At the opening of the week's trading, global crude oil prices dramatically breached the 100 USD per barrel mark. Brent crude surged 19,8% to 111 USD, while US crude WTI gained 15,5% to reach 107 USD. These increases follow an approximate 30% rise for both benchmarks just last week.

Adding to regional tensions, Iran announced the selection of Mojtaba Khamenei, son of the late Ayatollah Ali Khamenei, as the nation's next Supreme Leader. Mojtaba Khamenei is widely seen as a hardliner, and his appointment indicates the continued dominance of conservative factions in Iran's top leadership.

Abadan oil refinery in Southwest Iran in 2019. Photo: *Reuters*

Further escalating the conflict, the Israeli military reported on 8/3 that it launched attacks against Iranian commanders in Beirut, Lebanon's capital, during the early hours of that day. This action extended their campaign into central Beirut, following days of airstrikes that resulted in nearly 400 fatalities. The Israeli military had also previously issued threats to eliminate any successor to Khamenei. Concurrently, US President Donald Trump stated that the hostilities would only conclude with the destruction of Iran's current leadership structure.

On the evening of 7/3, Israeli forces also targeted oil facilities in Tehran for the first time. They assert these sites provide fuel to "various clients, including military units in Iran".

The ongoing Middle East conflict has paralyzed energy flows through the Strait of Hormuz for over a week. Saudi Arabia, the world's largest oil exporter, is rerouting shipments via the Red Sea. However, this increased volume cannot offset the significant reduction from cargo unable to transit through Hormuz.

Even a swift resolution to the conflict would likely leave global consumers and businesses facing elevated fuel prices for weeks or months. This prolonged impact stems from suppliers needing to repair damaged infrastructure, navigate disrupted logistics chains, and contend with heightened shipping risks.

Ha Thu (according to *Reuters*)