Dire predictions are being made about rising oil prices amid escalating rhetoric around the Iran-US war, with no end in sight to disruptions in the Strait of Hormuz. Depending on the source, forecast prices range from $250 per barrel to as high as $372 per barrel.<h2>What could drive the worst oil prices?</h2>Scenarios include further escalation of the war, particularly in the context of US President Donald Trump warning of potential attacks on power facilities and bridges in Iran. A prolonged closure of the Strait of Hormuz and supply losses from various facilities, including Iranian ones, are also key factors. There are additional concerns that, if the Houthis disrupt Red Sea routes for oil transit, another critical supply corridor could be affected.The base-case consensus for 2026 averages, such as the Reuters poll of 38 analysts, stands at around $89 per barrel for Brent crude. However, the upper end of predictions is significantly higher.<a href="https://www.wionews.com/videos/us-iran-war-oil-power-food-chains-under-pressure-1775454301502/embed">https://www.wionews.com/videos/us-iran-war-oil-power-food-chains-under-pressure-1775454301502/embed</a><h2>Worst-case predictions for 2026 crude oil</h2>Among the most extreme forecasts is that of Nobel Prize-winning economist Paul Krugman. In a Substack article, he predicted prices could reach $372 per barrel in a “high disruption” scenario. This would involve a global supply drop of nearly 16 per cent, potentially caused by major attacks on Iranian export facilities or Red Sea shipping routes, combined with low demand elasticity.CNBC host Jim Cramer suggested prices could reach $250 per barrel by the third quarter of 2026 in the event of a prolonged US–Iran war and sustained disruptions.Dave Ernsberger, President of S&amp;P Global Energy, also estimated a range of $200–$250 per barrel if war-related disruption of the Strait of Hormuz persists.Macquarie Group strategists, led by Vikas Dwivedi, expect prices to exceed $200 per barrel if the conflict continues into the summer.Stratas Advisors projects prices could rise towards $190 per barrel if the Strait remains closed for another full month.Rystad Energy analyst Janiv Shah, Vice President of oil markets, predicted prices could reach $135 per barrel, or remain above $110 if current conditions persist for four months.Also read: <a href="https://www.wionews.com/business-economy/us-crude-oil-price-jumps-to-115-per-barrel-after-trump-s-profane-threat-to-iran-details-here-1775461003647">US crude oil price jumps to $115 per barrel after Trump’s profane threat to Iran – Details here</a><h2>Oil prices rise despite US output strength</h2>Oil prices are already rising, even if they have not yet reached the worst-case scenarios outlined above, despite US confidence in its status as a top producer. The broad consensus price range currently sits between $100 and $190 per barrel. Some US officials and Wall Street analysts have flagged $200 per barrel as a possibility in worst-case scenarios involving prolonged conflict beyond three to four months. The average conditional forecast remains around $134–$135 per barrel.Analysts note that even short-term disruptions have already driven significant upward revisions to 2026 price forecasts. Ultimately, the trajectory of oil prices will depend on the duration of the conflict, diplomatic resolutions, and the reopening of the Strait of Hormuz.

Oil price forecasts are surging amid Iran war escalation fears and Strait of Hormuz disruptions. The worst-case predictions have crossed $370 per barrel.

Dire predictions are being made about rising oil prices amid escalating rhetoric around the Iran-US war, with no end in sight to disruptions in the Strait of Hormuz. Depending on the source, forecast prices range from $250 per barrel to as high as $372 per barrel. What could drive the worst oil prices? Scenarios include further escalation of the war, particularly in the context of US President Donald Trump warning of potential attacks on power facilities and bridges in Iran. A prolonged closure of the Strait of Hormuz and supply losses from various facilities, including Iranian ones, are also key factors. There are additional concerns that, if the Houthis disrupt Red Sea routes for oil transit, another critical supply corridor could be affected. The base-case consensus for 2026 averages, such as the Reuters poll of 38 analysts, stands at around $89 per barrel for Brent crude. However, the upper end of predictions is significantly higher. https://www.wionews.com/videos/us-iran-war-oil-power-food-chains-under-pressure-1775454301502/embed Worst-case predictions for 2026 crude oil Among the most extreme forecasts is that of Nobel Prize-winning economist Paul Krugman. In a Substack article, he predicted prices could reach $372 per barrel in a “high disruption” scenario. This would involve a global supply drop of nearly 16 per cent, potentially caused by major attacks on Iranian export facilities or Red Sea shipping routes, combined with low demand elasticity. CNBC host Jim Cramer suggested prices could reach $250 per barrel by the third quarter of 2026 in the event of a prolonged US–Iran war and sustained disruptions. Dave Ernsberger, President of S&P Global Energy, also estimated a range of $200–$250 per barrel if war-related disruption of the Strait of Hormuz persists. Macquarie Group strategists, led by Vikas Dwivedi, expect prices to exceed $200 per barrel if the conflict continues into the summer. Stratas Advisors projects prices could rise towards $190 per barrel if the Strait remains closed for another full month. Rystad Energy analyst Janiv Shah, Vice President of oil markets, predicted prices could reach $135 per barrel, or remain above $110 if current conditions persist for four months. Also read: US crude oil price jumps to $115 per barrel after Trump’s profane threat to Iran – Details here Oil prices rise despite US output strength Oil prices are already rising, even if they have not yet reached the worst-case scenarios outlined above, despite US confidence in its status as a top producer. The broad consensus price range currently sits between $100 and $190 per barrel. Some US officials and Wall Street analysts have flagged $200 per barrel as a possibility in worst-case scenarios involving prolonged conflict beyond three to four months. The average conditional forecast remains around $134–$135 per barrel. Analysts note that even short-term disruptions have already driven significant upward revisions to 2026 price forecasts. Ultimately, the trajectory of oil prices will depend on the duration of the conflict, diplomatic resolutions, and the reopening of the Strait of Hormuz.

Oil price forecasts are surging amid Iran war escalation fears and Strait of Hormuz disruptions. The worst-case predictions have crossed $370 per barrel.

Oil price to hit $250, or even go beyond $370? Worst-case scenarios amid Iran war and Strait of Hormuz disruptions, listed

The Iran-US-Israel conflict is turning into an economic war as an oil tanker operator reportedly paid Tehran a $2 million fee for safe passage through the Strait of Hormuz. Iran is now charging “favoured” countries millions of dollars per oil tanker for safe passage, even as gasoline prices have crossed $8 a gallon in some US pumps.&nbsp;<h2>The cost of war: Oil companies feel the pinch; Iran mulls Strait of Hormuz transit surcharge</h2>According to Lloyd’s List Intelligence, cited by the Financial Times and other media, at least one tanker operator is understood to have paid around $2 million as part of an agreement to transit via Iran’s newly established “safe corridor” along the Strait of Hormuz. This is a route near Iranian territorial waters around Larak Island, where the IRGC Navy and port authorities are reportedly conducting visual vetting and verification of vessels. Based on recent reports, at least nine vessels have used this corridor, mostly from diplomatically cleared nations such as India, Pakistan and China.As per reports, India did not pay for passage of its LPG carriers Shivalik and Nanda Devi. A Pakistan-flagged Karachi tanker was also similarly cleared through government-to-government talks.While Iran is negotiating such arrangements with operators on a case-by-case basis, its parliament is debating formalised surcharges. Iran, in effect, is creating a “protection” racket in Strait of Hormuz.Also read: <a href="https://www.wionews.com/world/iran-missile-strike-hits-haifa-oil-refinery-israel-reports-no-significant-damage-1773957556388">Iran missile strike hits Haifa oil refinery, Israel reports ‘no significant damage’</a><h2>Trump administration moves to allow passage of Iranian oil</h2>Treasury Secretary Scott Bessent said the US will allow 140 million barrels of Iranian oil already at sea to move. This de-sanctioning will free up roughly 10–14 days of global supply and drive prices down in the near term. This Iranian oil was originally headed mostly to China.This is the second instance of the US de-sanctioning oil in recent weeks, following the decision to allow Russian oil meant mainly for India to pass through.&nbsp;These are short-term releases of existing cargoes to bring down global oil prices, which have crossed $100 per barrel in recent days.Also read: <a href="https://www.wionews.com/world/us-to-release-140-million-barrels-of-sanctioned-iranian-oil-floating-on-water-says-bessent-1773930578453">US to release 140 million barrels of sanctioned Iranian oil floating on water, says Bessent</a><h2>Iran’s twin war strategy: Shut Hormuz, attack Gulf energy installations</h2>In the past few days, Iran has intensified attacks on oil and gas installations in Saudi Arabia, Qatar and Kuwait. Combined with its threats of selective closure of the Strait of Hormuz to enemy vessels, the strategy appears to be working in driving up oil prices. Surcharges and payments to Iran for passage would amount to the country funding the war through its leverage over Hormuz traffic.While Bessent framed the freeing up of Iranian oil as using its own barrels “against Tehran”, the real goal appears to be to stabilise oil prices for US consumers and industry: America acts when Americans are pinched.&nbsp;<a href="https://www.wionews.com/videos/us-iran-war-attacks-on-oil-infrastructure-in-west-asia-triggers-price-spike-1773926960482/embed">https://www.wionews.com/videos/us-iran-war-attacks-on-oil-infrastructure-in-west-asia-triggers-price-spike-1773926960482/embed</a>Brent crude has spiked by up to 60 per cent since the joint US–Israeli strikes on Iran on 28 February started the war, hitting $118 per barrel at one point.&nbsp;At the pump, US gas prices are up sharply, with some reports citing increases of up to 90 cents per gallon nationally.In reality, overall tanker traffic through Hormuz has collapsed. Only around 15 vessels have transited in recent days, mostly Iran-linked ones.

Iran is leveraging control over the Strait of Hormuz by charging tanker fees, and US is desanctioning Iranian oil stuck at sea. Spike in global crude prices is driving up US petrol costs. All in all, we are witnessing an economic warfare

The Iran-US-Israel conflict is turning into an economic war as an oil tanker operator reportedly paid Tehran a $2 million fee for safe passage through the Strait of Hormuz. Iran is now charging “favoured” countries millions of dollars per oil tanker for safe passage, even as gasoline prices have crossed $8 a gallon in some US pumps. The cost of war: Oil companies feel the pinch; Iran mulls Strait of Hormuz transit surcharge According to Lloyd’s List Intelligence, cited by the Financial Times and other media, at least one tanker operator is understood to have paid around $2 million as part of an agreement to transit via Iran’s newly established “safe corridor” along the Strait of Hormuz. This is a route near Iranian territorial waters around Larak Island, where the IRGC Navy and port authorities are reportedly conducting visual vetting and verification of vessels. Based on recent reports, at least nine vessels have used this corridor, mostly from diplomatically cleared nations such as India, Pakistan and China. As per reports, India did not pay for passage of its LPG carriers Shivalik and Nanda Devi. A Pakistan-flagged Karachi tanker was also similarly cleared through government-to-government talks. While Iran is negotiating such arrangements with operators on a case-by-case basis, its parliament is debating formalised surcharges. Iran, in effect, is creating a “protection” racket in Strait of Hormuz. Also read: Iran missile strike hits Haifa oil refinery, Israel reports ‘no significant damage’ Trump administration moves to allow passage of Iranian oil Treasury Secretary Scott Bessent said the US will allow 140 million barrels of Iranian oil already at sea to move. This de-sanctioning will free up roughly 10–14 days of global supply and drive prices down in the near term. This Iranian oil was originally headed mostly to China. This is the second instance of the US de-sanctioning oil in recent weeks, following the decision to allow Russian oil meant mainly for India to pass through. These are short-term releases of existing cargoes to bring down global oil prices, which have crossed $100 per barrel in recent days. Also read: US to release 140 million barrels of sanctioned Iranian oil floating on water, says Bessent Iran’s twin war strategy: Shut Hormuz, attack Gulf energy installations In the past few days, Iran has intensified attacks on oil and gas installations in Saudi Arabia, Qatar and Kuwait. Combined with its threats of selective closure of the Strait of Hormuz to enemy vessels, the strategy appears to be working in driving up oil prices. Surcharges and payments to Iran for passage would amount to the country funding the war through its leverage over Hormuz traffic. While Bessent framed the freeing up of Iranian oil as using its own barrels “against Tehran”, the real goal appears to be to stabilise oil prices for US consumers and industry: America acts when Americans are pinched. https://www.wionews.com/videos/us-iran-war-attacks-on-oil-infrastructure-in-west-asia-triggers-price-spike-1773926960482/embed Brent crude has spiked by up to 60 per cent since the joint US–Israeli strikes on Iran on 28 February started the war, hitting $118 per barrel at one point. At the pump, US gas prices are up sharply, with some reports citing increases of up to 90 cents per gallon nationally. In reality, overall tanker traffic through Hormuz has collapsed. Only around 15 vessels have transited in recent days, mostly Iran-linked ones.

Iran is leveraging control over the Strait of Hormuz by charging tanker fees, and US is desanctioning Iranian oil stuck at sea. Spike in global crude prices is driving up US petrol costs. All in all, we are witnessing an economic warfare

Crude war: Oil tanker firm paid Iran $2 million for Strait of Hormuz safe passage; Iran mulls surcharge as US gas costs $8 at some pumps

Iran war has partially pushed the world into an economic crisis. Rising crude oil prices have led to the cost of essential commodities &nbsp;skyrocketing. On Thursday, Brent crude prices surged more than 4 per cent to USD 112.17 per barrel. This comes after Israel struck an Iranian gas field and Iran retaliated by targeting a key fuel hub in Qatar.&nbsp;On Wednesday night Iran launched retaliatory strikes on Qatar's Ras Laffan Industrial City, one of the world's largest liquefied natural gas (LNG) facilities, after Israeli hit the South Pars gas field.Extensive damage was caused to Ras Laffan Industrial City in the attack, said Qatar's defence ministry. This was the second attack in the last 12 hours at the facility, raising security concerns around key global energy assets.&nbsp;ALSO READ: <a href="https://www.wionews.com/world/major-security-breach-drone-citing-over-us-army-base-close-to-where-rubio-hegseth-live-1773896558179">Major security breach: Drone sighting over US Army base, close to where Rubio, Hegseth live</a>&nbsp;"QatarEnergy confirms that Ras Laffan Industrial City this evening has been the subject of missile attacks. Emergency response teams were deployed immediately to contain the resulting fires, as extensive damage has been caused. All personnel have been accounted for and no casualties have been reported at this time," the company said in a post on X.&nbsp;No casualties was reported in the incident, though significant damage was done to the facility.The incident has raised speculation of further disruption to energy infrastructure in the region, which plays a critical role in global oil and gas supply.&nbsp;There are also reports of Israeli jets hitting a gas facility in Bushehr in Iran.&nbsp;

This was the second attack on Ras Laffan Industrial City, one of the worlds largest liquefied natural gas facilities, in the last 12 hours, raising security concerns around key global energy assets.

Iran war has partially pushed the world into an economic crisis. Rising crude oil prices have led to the cost of essential commodities skyrocketing. On Thursday, Brent crude prices surged more than 4 per cent to USD 112.17 per barrel. This comes after Israel struck an Iranian gas field and Iran retaliated by targeting a key fuel hub in Qatar. On Wednesday night Iran launched retaliatory strikes on Qatar's Ras Laffan Industrial City, one of the world's largest liquefied natural gas (LNG) facilities, after Israeli hit the South Pars gas field. Extensive damage was caused to Ras Laffan Industrial City in the attack, said Qatar's defence ministry. This was the second attack in the last 12 hours at the facility, raising security concerns around key global energy assets. ALSO READ: Major security breach: Drone sighting over US Army base, close to where Rubio, Hegseth live "QatarEnergy confirms that Ras Laffan Industrial City this evening has been the subject of missile attacks. Emergency response teams were deployed immediately to contain the resulting fires, as extensive damage has been caused. All personnel have been accounted for and no casualties have been reported at this time," the company said in a post on X. No casualties was reported in the incident, though significant damage was done to the facility. The incident has raised speculation of further disruption to energy infrastructure in the region, which plays a critical role in global oil and gas supply. There are also reports of Israeli jets hitting a gas facility in Bushehr in Iran.

This was the second attack on Ras Laffan Industrial City, one of the world's largest liquefied natural gas facilities, in the last 12 hours, raising security concerns around key global energy assets.

Iran war impact: Brent crude prices surge over USD 100 per barrel

International Energy Agency (IEA) on Sunday (March 15) said strategic oil reserves will be released in Asia and Oceania "immediately" and as early as the end of March in America and Europe as the war in West Asia triggered a sharp rise in crude prices, forcing several countries to take emergency measures like rationing and prioritisation of gas and oil.&nbsp;The announcement comes after IEA member countries on March 11 agreed to release oil stockpiles to mitigate the sharp surge in oil prices caused by the escalating conflict in West Asia, marking the largest-ever response of its kind.&nbsp;"Individual implementation plans have been submitted to the IEA by member countries. These plans indicate that stocks will be made available by IEA member countries in Asia Oceania immediately," said the agency.&nbsp;"Stocks from IEA member countries in the Americas and Europe will be made available starting from the end of March," it added.&nbsp;According to the IEA, the total release amounts to more than 400 million barrels of reserve oil. Of this, governments have committed to make around 271.7 million barrels from their stocks, while industries pledged 111.6 million and 23.6 million from other sources.&nbsp;Such measures are termed an emergency stockpile release, the sixth such in the history of the global energy body and the first since the start of the Russia-Ukraine war in 2022.&nbsp;However, the announcement hasn't translated into a cooling of oil prices, which still hover around $100 per barrel, the highest since 2022 and significantly higher than $70 before the start of the war.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/assembly-elections-2026-ec-announces-poll-dates-for-west-bengal-tamil-nadu-kerala-assam-and-puducherry-1773573754642">Bengal to vote on April 23, 29; Tamil Nadu on April 23; Kerala, Assam, Puducherry on April 9; results on May 4</a>&nbsp;The IEA stressed that "the most important factor in ensuring a return to stable flows is the resumption of regular transit of shipping through the Strait of Hormuz," adding that "adequate insurance mechanisms and physical protection for shipping are key to the resumption of flows."&nbsp;Western economies coordinate their strategic oil stockpiles through the IEA, which was formed in 1974 after the oil crisis and now has 33 full members and 13 associate countries, including India and China.&nbsp;These developments come after Iran has effectively blocked the Strait of Hormuz since the beginning of the war on February 28, triggered by joint US-Israeli strikes targeting the top leadership of Iran, assassinating Supreme Leader Ayatollah Ali Khamenei on the opening day of the military campaign.&nbsp;In retaliation, Iran launched missile and drone attacks on US bases across the region. It announced the effective closure of the Strait, which accounts for nearly 20 per cent of global oil shipping, leading to a sharp rise in energy prices, with crude crossing $100 per barrel.&nbsp;US President Donald Trump is facing mounting domestic and international pressure as the conflict in West Asia triggered a global energy shock. He urged multiple countries, including China, France, South Korea and the UK to send warships to reopen the strait following a US military strike on Kharg Island, Iran's critical oil export hub, to push Tehran to reopen the Strait of Hormuz.&nbsp;&nbsp;(Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)

The announcement hasn't translated into a cooling of oil prices, which still hover around $100 per barrel, the highest since 2022 and significantly higher than $70 before the start of the war.

International Energy Agency (IEA) on Sunday (March 15) said strategic oil reserves will be released in Asia and Oceania "immediately" and as early as the end of March in America and Europe as the war in West Asia triggered a sharp rise in crude prices, forcing several countries to take emergency measures like rationing and prioritisation of gas and oil. The announcement comes after IEA member countries on March 11 agreed to release oil stockpiles to mitigate the sharp surge in oil prices caused by the escalating conflict in West Asia, marking the largest-ever response of its kind. "Individual implementation plans have been submitted to the IEA by member countries. These plans indicate that stocks will be made available by IEA member countries in Asia Oceania immediately," said the agency. "Stocks from IEA member countries in the Americas and Europe will be made available starting from the end of March," it added. According to the IEA, the total release amounts to more than 400 million barrels of reserve oil. Of this, governments have committed to make around 271.7 million barrels from their stocks, while industries pledged 111.6 million and 23.6 million from other sources. Such measures are termed an emergency stockpile release, the sixth such in the history of the global energy body and the first since the start of the Russia-Ukraine war in 2022. However, the announcement hasn't translated into a cooling of oil prices, which still hover around $100 per barrel, the highest since 2022 and significantly higher than $70 before the start of the war. Also Read: Bengal to vote on April 23, 29; Tamil Nadu on April 23; Kerala, Assam, Puducherry on April 9; results on May 4 The IEA stressed that "the most important factor in ensuring a return to stable flows is the resumption of regular transit of shipping through the Strait of Hormuz," adding that "adequate insurance mechanisms and physical protection for shipping are key to the resumption of flows." Western economies coordinate their strategic oil stockpiles through the IEA, which was formed in 1974 after the oil crisis and now has 33 full members and 13 associate countries, including India and China. These developments come after Iran has effectively blocked the Strait of Hormuz since the beginning of the war on February 28, triggered by joint US-Israeli strikes targeting the top leadership of Iran, assassinating Supreme Leader Ayatollah Ali Khamenei on the opening day of the military campaign. In retaliation, Iran launched missile and drone attacks on US bases across the region. It announced the effective closure of the Strait, which accounts for nearly 20 per cent of global oil shipping, leading to a sharp rise in energy prices, with crude crossing $100 per barrel. US President Donald Trump is facing mounting domestic and international pressure as the conflict in West Asia triggered a global energy shock. He urged multiple countries, including China, France, South Korea and the UK to send warships to reopen the strait following a US military strike on Kharg Island, Iran's critical oil export hub, to push Tehran to reopen the Strait of Hormuz. (Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)

The announcement hasn't translated into a cooling of oil prices, which still hover around $100 per barrel, the highest since 2022 and significantly higher than $70 before the start of the war.&nbsp;

Global energy body to release 400 million barrels of oil from reserves as West Asia war triggers energy crisis

The Iran war has led to one of the worst oil shocks since the 1970s. Oil prices on Thursday rose sharply after three more cargo vessels were hit in the Gulf by Iranian forces. Crude oil in Asian trading was $100 ($74.79) a barrel before the price eased marginally to settle at about $97.50 in the afternoon.&nbsp;This comes despite the International Energy Agency saying on Wednesday that it will release a record 400 million barrels of oil in an effort to curb the rising price and it impact on the world economy.&nbsp;The Strait of Hormuz, a key waterway for energy shipments is temporarily closed in the wake that they could be attacked.&nbsp;ALSO READ:<a href="https://www.wionews.com/world/iran-is-a-tough-here-s-what-trump-said-on-tehran-s-resistance-in-the-ongoing-war-1773301153518"> Iran is a tough...: Here's what Trump said on Tehran's resistance in the ongoing war</a>&nbsp;On Wednesday, three vessels were attacked by Iran's Revolutionary Guards, who said they fired on ships in the Gulf as their orders were disobeyed by them.<h2>Oil prices could rise up to $200 per barrel</h2>&nbsp;An Islamic Revolutionary Guard Corps (IRGC) spokesperson on Wednesday said that any vessel linked to the US, Israel or their allies will be targeted and that oil prices could hit &nbsp;$200 per barrel."You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel," he said and added, "The price of oil depends on regional security, and you are the main source of insecurity in the region."<h2>“Severely weakened Iran's military capabilities”</h2>&nbsp;Meanwhile, US President Donald Trump has claimed that the 11-day-war has "severely crippled" Iran's military capabilities.&nbsp;"Over the past 11 days, our military has virtually destroyed Iran. Tough country," said while addressing a gathering in Kentucky.&nbsp;"Their air force is gone. That took the better part of about three hours. They no longer have radar. They don't have anti-aircraft equipment. They don't have anything. Their missiles are down by 90 per cent. Their drones are down by 85 per cent. We're blowing up the factories where they're made, left and right," he further said.&nbsp;

On Wednesday, three vessels were attacked by Irans Revolutionary Guards, who said they fired on ships in the Gulf as their orders were disobeyed by them.

The Iran war has led to one of the worst oil shocks since the 1970s. Oil prices on Thursday rose sharply after three more cargo vessels were hit in the Gulf by Iranian forces. Crude oil in Asian trading was $100 ($74.79) a barrel before the price eased marginally to settle at about $97.50 in the afternoon. This comes despite the International Energy Agency saying on Wednesday that it will release a record 400 million barrels of oil in an effort to curb the rising price and it impact on the world economy. The Strait of Hormuz, a key waterway for energy shipments is temporarily closed in the wake that they could be attacked. ALSO READ: Iran is a tough...: Here's what Trump said on Tehran's resistance in the ongoing war On Wednesday, three vessels were attacked by Iran's Revolutionary Guards, who said they fired on ships in the Gulf as their orders were disobeyed by them. Oil prices could rise up to $200 per barrel An Islamic Revolutionary Guard Corps (IRGC) spokesperson on Wednesday said that any vessel linked to the US, Israel or their allies will be targeted and that oil prices could hit $200 per barrel. "You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel," he said and added, "The price of oil depends on regional security, and you are the main source of insecurity in the region." “Severely weakened Iran's military capabilities” Meanwhile, US President Donald Trump has claimed that the 11-day-war has "severely crippled" Iran's military capabilities. "Over the past 11 days, our military has virtually destroyed Iran. Tough country," said while addressing a gathering in Kentucky. "Their air force is gone. That took the better part of about three hours. They no longer have radar. They don't have anti-aircraft equipment. They don't have anything. Their missiles are down by 90 per cent. Their drones are down by 85 per cent. We're blowing up the factories where they're made, left and right," he further said.

On Wednesday, three vessels were attacked by Iran's Revolutionary Guards, who said they fired on ships in the Gulf as their orders were disobeyed by them.

Oil prices hit $100 per barrel after Iran attacks three more cargo vessels

Originally developed to replace the ageing Army Tactical Missile System (ATACMS), the missile offers significantly greater range and operational flexibility.

'400+ km range, deadly, all-domain ops': What is PrSM missile & why did US deploy it for the first time in Iran war?

Global markets staged a dramatic turnaround on Monday (March 9) after comments from Donald Trump suggested the conflict with Iran may be nearing an end. Speaking to CBS News, Trump said the war was “very complete, pretty much,” sparking a sharp reversal in both oil prices and stock markets after a day of intense volatility. Earlier in the day, oil prices had surged amid fears that the conflict could disrupt supplies through the critical Strait of Hormuz, a key shipping route for global crude exports. US crude oil prices briefly jumped as much as 32% overnight to $119 per barrel before sharply reversing.&nbsp;By the close of trading, US crude had dropped about 5% to around $86 per barrel. International benchmark Brent crude also pulled back more than 3.5%, falling below $89 per barrel. US stock markets also rebounded strongly. The S&amp;P 500, which had earlier fallen as much as 1.5%, ended the session up 0.83%. The Nasdaq Composite reversed a 1.4% drop to close 1.38% higher. Meanwhile, the Dow Jones Industrial Average recovered from a drop of more than 880 points to finish the day up 239 points.&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-says-he-had-a-very-good-call-with-putin-here-s-what-russian-president-said-about-middle-east-war-1773096489961">Trump says he had 'a very good call' with Putin. Here’s what Russian president said about Middle East war</a>&nbsp;Despite Monday’s pullback, oil prices remain sharply higher. US crude has surged more than 50% since the beginning of the year and more than 30% in the past five days alone. Rising energy costs are also hitting consumers. According to fuel-tracking service GasBuddy, the average price of gasoline in the United States climbed to $3.49 per gallon Monday afternoon, up more than 50 cents since the conflict began.<h2>How global markets reacted?</h2>Global markets were hit earlier in the day before the rebound in the US. Japan’s Nikkei 225 suffered its worst decline since last year’s tariff-driven sell-off, plunging 5.2% and entering correction territory after falling more than 10% from its recent high. South Korea’s KOSPI dropped 6%, triggering a 20-minute trading halt during heavy selling.&nbsp;In Europe, the STOXX Europe 600 closed 0.6% lower as markets in Germany, France, Italy and Spain fell roughly 1%.Bond markets also reversed course. The yield on the US 10‑Year Treasury slipped to 4.10%, while the U.S. 30‑Year Treasury yield fell to 4.71%. Energy markets showed similar volatility. Natural gas futures traded in New York dropped about 4%, while European contracts eased after an earlier surge and were trading about 5% higher.&nbsp;<a href="https://www.wionews.com/videos/india-indonesia-to-buy-india-s-brahmos-missile-in-major-defence-deal-wion-1773098060808/embed">https://www.wionews.com/videos/india-indonesia-to-buy-india-s-brahmos-missile-in-major-defence-deal-wion-1773098060808/embed</a>&nbsp;Heating oil, often viewed as a proxy for jet fuel, fell more than 8% after earlier jumping as much as 23%. Finance ministers from major industrialized nations also held emergency talks Monday to discuss the possibility of releasing strategic oil reserves to calm markets. However, no coordinated release was announced for now.&nbsp;Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

Oil prices, stocks stage dramatic reversal after Trump says Iran war ‘very complete’

Global markets staged a dramatic turnaround on Monday (March 9) after comments from Donald Trump suggested the conflict with Iran may be nearing an end. Speaking to CBS News, Trump said the war was “very complete, pretty much,” sparking a sharp reversal in both oil prices and stock markets after a day of intense volatility. Earlier in the day, oil prices had surged amid fears that the conflict could disrupt supplies through the critical Strait of Hormuz, a key shipping route for global crude exports. US crude oil prices briefly jumped as much as 32% overnight to $119 per barrel before sharply reversing. By the close of trading, US crude had dropped about 5% to around $86 per barrel. International benchmark Brent crude also pulled back more than 3.5%, falling below $89 per barrel. US stock markets also rebounded strongly. The S&P 500, which had earlier fallen as much as 1.5%, ended the session up 0.83%. The Nasdaq Composite reversed a 1.4% drop to close 1.38% higher. Meanwhile, the Dow Jones Industrial Average recovered from a drop of more than 880 points to finish the day up 239 points. Also Read: Trump says he had 'a very good call' with Putin. Here’s what Russian president said about Middle East war Despite Monday’s pullback, oil prices remain sharply higher. US crude has surged more than 50% since the beginning of the year and more than 30% in the past five days alone. Rising energy costs are also hitting consumers. According to fuel-tracking service GasBuddy, the average price of gasoline in the United States climbed to $3.49 per gallon Monday afternoon, up more than 50 cents since the conflict began. How global markets reacted? Global markets were hit earlier in the day before the rebound in the US. Japan’s Nikkei 225 suffered its worst decline since last year’s tariff-driven sell-off, plunging 5.2% and entering correction territory after falling more than 10% from its recent high. South Korea’s KOSPI dropped 6%, triggering a 20-minute trading halt during heavy selling. In Europe, the STOXX Europe 600 closed 0.6% lower as markets in Germany, France, Italy and Spain fell roughly 1%. Bond markets also reversed course. The yield on the US 10‑Year Treasury slipped to 4.10%, while the U.S. 30‑Year Treasury yield fell to 4.71%. Energy markets showed similar volatility. Natural gas futures traded in New York dropped about 4%, while European contracts eased after an earlier surge and were trading about 5% higher. https://www.wionews.com/videos/india-indonesia-to-buy-india-s-brahmos-missile-in-major-defence-deal-wion-1773098060808/embed Heating oil, often viewed as a proxy for jet fuel, fell more than 8% after earlier jumping as much as 23%. Finance ministers from major industrialized nations also held emergency talks Monday to discuss the possibility of releasing strategic oil reserves to calm markets. However, no coordinated release was announced for now. Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

Oil prices and global stocks reversed sharply after Trump signaled the Iran conflict may be nearing its end, easing fears of supply disruption

G7 countries will hold an emergency meeting on Monday (March 9) to address soaring oil prices after crude surged 30% to $119.48, crashed 19% to $96.45, and later settled near $103.32, a massive $23 intraday swing, one of the biggest single-day reversals in crude oil market history. The sharp volatility came as the escalating US-Israel conflict with Iran rattled global markets. Finance ministers from major industrialised economies, including UK Chancellor Rachel Reeves, are expected to discuss the economic consequences of the conflict and its impact on energy markets and inflation.&nbsp;Oil prices spiked as traders feared prolonged disruptions to energy shipments through the crucial Strait of Hormuz, a narrow maritime route that normally carries about 20% of the world’s oil supply. Traffic through the strait has slowed dramatically since the conflict intensified more than a week ago. Global benchmark Brent crude briefly climbed close to $120 per barrel during Asian trading on Monday before retreating to around $107. US West Texas Intermediate (WTI) crude followed similar movements and traded near $104 per barrel.&nbsp;According to a report by the Financial Times, the G7 meeting may consider a coordinated release of petroleum reserves through the International Energy Agency (IEA). If implemented, it would mark the first such intervention since 2022, when reserves were released following Russia’s invasion of Ukraine. The possibility of major supply disruptions has raised fears of higher energy costs for households and businesses worldwide. Persistent energy inflation could also limit the scope for central banks to cut interest rates.&nbsp;Also Read: <a href="https://www.wionews.com/world/mirror-of-power-will-mojtaba-khamenei-follow-his-father-ali-khamenei-s-path-or-build-a-harder-line-for-iran-1773057882409">Mirror of power: Will Mojtaba Khamenei follow his father Ali Khamenei’s path or build a harder line for Iran?</a>&nbsp;Geopolitical tensions escalated over the weekend. The US and Israel carried out fresh airstrikes across Iran targeting several sites, including oil storage facilities. Meanwhile, Iran reportedly launched attacks on energy infrastructure in nearby Gulf states. Saudi Arabia said it intercepted two waves of drones heading toward a major oilfield overnight.Political developments inside Iran also added to uncertainty after Mojtaba Khamenei was named successor to Supreme Leader Ali Khamenei, signalling that hardline leadership remains firmly in control during the conflict.<h2>How global markets reacted to Israel-Iran war?</h2>Financial markets reacted sharply. European stock markets fell after steep declines across Asia. Germany’s DAX dropped 1.6% while France’s CAC 40 fell 2%. In London, the FTSE 100 slipped 1.3%, although energy companies BP and Shell gained as oil prices surged. Asian markets saw deeper losses earlier in the day. Japan’s Nikkei 225 fell 5.2%, while South Korea’s Kospi dropped 6%, triggering a temporary circuit breaker to halt trading and prevent panic selling. Natural gas prices also surged. UK gas for month-ahead delivery jumped nearly 25% to 171p per therm at the start of trading before easing to about 156p. Despite the spike, prices remain far below the 2022 peak of 640p reached after Russia’s invasion of Ukraine.&nbsp;<a href="https://www.wionews.com/videos/israel-iran-war-us-uneasy-after-israel-hits-iranian-fuel-depot-1773052202181/embed">https://www.wionews.com/videos/israel-iran-war-us-uneasy-after-israel-hits-iranian-fuel-depot-1773052202181/embed</a>&nbsp;Rising geopolitical risks have also pushed up government borrowing costs. The yield on UK two-year government bonds climbed to 4.12% from 3.87%, while the benchmark 10-year yield rose to 4.76%, up from around 4.3% before the conflict began. US President Donald Trump downplayed concerns over rising oil prices. Posting on his Truth Social platform, he said temporary price increases were a small cost for global security and predicted oil prices would fall once Iran’s nuclear threat was eliminated. However, higher fuel costs are already hitting American consumers. Data from the motorists group AAA shows the average price of regular gasoline in the US rose 11% last week to $3.32 per gallon.&nbsp;Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

'Oil' is not well: G7 countries, Japan weigh strategic reserve release as price hovers around $100

G7 countries will hold an emergency meeting on Monday (March 9) to address soaring oil prices after crude surged 30% to $119.48, crashed 19% to $96.45, and later settled near $103.32, a massive $23 intraday swing, one of the biggest single-day reversals in crude oil market history. The sharp volatility came as the escalating US-Israel conflict with Iran rattled global markets. Finance ministers from major industrialised economies, including UK Chancellor Rachel Reeves, are expected to discuss the economic consequences of the conflict and its impact on energy markets and inflation. Oil prices spiked as traders feared prolonged disruptions to energy shipments through the crucial Strait of Hormuz, a narrow maritime route that normally carries about 20% of the world’s oil supply. Traffic through the strait has slowed dramatically since the conflict intensified more than a week ago. Global benchmark Brent crude briefly climbed close to $120 per barrel during Asian trading on Monday before retreating to around $107. US West Texas Intermediate (WTI) crude followed similar movements and traded near $104 per barrel. According to a report by the Financial Times, the G7 meeting may consider a coordinated release of petroleum reserves through the International Energy Agency (IEA). If implemented, it would mark the first such intervention since 2022, when reserves were released following Russia’s invasion of Ukraine. The possibility of major supply disruptions has raised fears of higher energy costs for households and businesses worldwide. Persistent energy inflation could also limit the scope for central banks to cut interest rates. Also Read: Mirror of power: Will Mojtaba Khamenei follow his father Ali Khamenei’s path or build a harder line for Iran? Geopolitical tensions escalated over the weekend. The US and Israel carried out fresh airstrikes across Iran targeting several sites, including oil storage facilities. Meanwhile, Iran reportedly launched attacks on energy infrastructure in nearby Gulf states. Saudi Arabia said it intercepted two waves of drones heading toward a major oilfield overnight. Political developments inside Iran also added to uncertainty after Mojtaba Khamenei was named successor to Supreme Leader Ali Khamenei, signalling that hardline leadership remains firmly in control during the conflict. How global markets reacted to Israel-Iran war? Financial markets reacted sharply. European stock markets fell after steep declines across Asia. Germany’s DAX dropped 1.6% while France’s CAC 40 fell 2%. In London, the FTSE 100 slipped 1.3%, although energy companies BP and Shell gained as oil prices surged. Asian markets saw deeper losses earlier in the day. Japan’s Nikkei 225 fell 5.2%, while South Korea’s Kospi dropped 6%, triggering a temporary circuit breaker to halt trading and prevent panic selling. Natural gas prices also surged. UK gas for month-ahead delivery jumped nearly 25% to 171p per therm at the start of trading before easing to about 156p. Despite the spike, prices remain far below the 2022 peak of 640p reached after Russia’s invasion of Ukraine. https://www.wionews.com/videos/israel-iran-war-us-uneasy-after-israel-hits-iranian-fuel-depot-1773052202181/embed Rising geopolitical risks have also pushed up government borrowing costs. The yield on UK two-year government bonds climbed to 4.12% from 3.87%, while the benchmark 10-year yield rose to 4.76%, up from around 4.3% before the conflict began. US President Donald Trump downplayed concerns over rising oil prices. Posting on his Truth Social platform, he said temporary price increases were a small cost for global security and predicted oil prices would fall once Iran’s nuclear threat was eliminated. However, higher fuel costs are already hitting American consumers. Data from the motorists group AAA shows the average price of regular gasoline in the US rose 11% last week to $3.32 per gallon. Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

G7 countries to hold emergency talks as oil swings wildly amid US-Israel-Iran conflict. Crude surged to $119 before retreating, raising fears of supply disruption

The Group of Seven nations aimed to cripple Russia's oil revenue by imposing a price cap of $60 per barrel. However, the effectiveness of this strategy is under growing scrutiny.

G7 oil price cap on Russia crumbling?

The price of crude oil dropped by more than $1 a barrel as traders booked profits after benchmarks reached multi-month highs the previous session and an OPEC report fueled concerns about summer demand. Only the second time this month did the global benchmark Brent crude finish lower, down $1.24 or 1.4% to settle at $86.09 per barrel. US West Texas Intermediate (WTI) prices fell $1.10, or 1.3%, to $82.16 per barrel at the market close.

Crude oil prices decline 1% after scaling multi-month highs

The Biden administration has announced the release of strategic oil reserves but the US is not alone here. Joining Washington are India, Japan, South Korea, China, and the UK.

United States: Emergency oil release to lower fuel prices

United States: US plan could strain ties between Washington and Riyadh

Crude oil price is trading hits 7-year highs, as surging demand continues to outpace supply, even as the global economy continues on the path to recovery from the pandemic lows.

Crude oil price hits 7-year highs as Goldman Sachs raises price target

Oil prices climbed on Monday to a one-week high in a second straight session of gains as concerns over US supplies following damage from Hurricane Ida supported the market, along with expectations for higher demand.

World Business Watch: Global oil price climbs to one-week high on US supply concerns

Snapping a three-day rally on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies, oil prices settled lower on Thursday.

World Business Watch: Oil rally falters on pandemic surge, renewed Mexico supply

Oil prices rose more than 5% on Monday, as a weaker dollar and strong global equities markets boosted crude futures after seven sessions of declines.

World Business Watch: Oil jumps 5% after 7 days of losses, boosted by weaker dollar

Closing out its worst day since March this year oil prices slumped $5 a barrel on Monday, after an OPEC+ agreement to boost output stoked fears of a surplus just as rising COVID-19 infections once again threaten demand.

World Business Watch: Oil prices slip after OPEC and allies reach deal to boost supply

Oil prices fell more than 1% on Monday, hit by an agreement over the weekend within the OPEC+ group of producers to boost output after an earlier pact fell apart due to objections from the United Arab Emirates (UAE).

World Business Watch: Oil falls more than 1% after OPEC+ agrees to boost supply

Oil prices climbed in early Asian trade on Monday, underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC+ meeting this week for supply guidance.

World Business Watch: Oil prices stay firm as demand to outstrip supply in H2

Brent crude futures rose 23 cents, or 0.3%, to settle at $68.55 a barrel while U.S. West Texas Intermediate (WTI) crude futures rose 36 cents, or 0.6%, to end the session at $65.28.

Crude oil falls on fading pipeline outage fears and India COVID pandemic

Oil prices climbed on Monday (May 03) as optimism about a strong rebound in fuel demand in developed countries and China in the second half of the year overshadowed growing concerns of a full lockdown in India to curb the COVID-19 pandemic.

World Business Watch: Oil prices rise amid strong rebound in fuel demand

Brent crude ended the session up 74 cents, or 1.7%, at $45.17 a barrel, while West Texas Intermediate oil settled 49 cents, or 1.2% higher, at $42.19 a barrel.

Oil prices hit 5-month high as U.S crude stocks fall

For the first time, diesel price has surpassed the petrol as fuel rate hiked for the 18th day in a row on Wednesday.

For the first time, Diesel costlier than petrol in Delhi

Petrol price on Monday was hiked by 33 paise per litre and diesel by 58 paise to take retail rates to record high as the oil companies increased prices for the 16th day in a row.

India: Petrol, diesel price at new high after 16th price hike in a row

On Monday, Oil in the United States was trading below zero. Why have the global oil prices collapsed? What does it mean for your pocket?

Wuhan Coronavirus impact: Oil in the US trades in the negative | Gravitas

The low prices of crude oil may benefit India in long term but may not boost the Indian economy in the short run. India imports around 80% of its crude. Low crude price may boost consumer spending and government's income from excise.

Fineprint: Low crude price may benefit India in long term, but may not boost economy in short run

GDP of oil industries dependent countries worst hit by crude oil price drop. Kuwait to face development setback amid COVID-19 pandemic crisis.

GDP of oil industries dependent countries worst hit by crude oil price drop

The price of a barrel of benchmark US&nbsp;oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity.

Such a steep drop in the oil benchmark prompted strong reactions beyond trading floors.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/amid-coronavirus-pandemic-us-benchmark-wti-oil-collapses-to-001-a-barrel-293678" hreflang="en">Amid coronavirus pandemic, US benchmark WTI oil collapses to $0.01 a barrel</a>

Here is an explanation of what negative&nbsp;crude&nbsp;prices mean in the real world:

WHAT&nbsp;DOES A NEGATIVE FUTURES PRICE MEAN?

The price of a barrel of&nbsp;crude&nbsp;varies based on factors such as supply, demand and quality. Supply of fuel has been far above demand since the coronavirus forced billions of people to stop traveling.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/oil-prices-tumble-to-11-amid-oversupply-fall-in-demand-due-to-coronavirus-293611" hreflang="en">Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus</a>

Because of oversupply, storage tanks for WTI are becoming so full it is difficult to find space. The US&nbsp;Energy Information Administration said last week that storage at Cushing, Oklahoma, the heart of the US&nbsp;pipeline network, was about 72 per cent&nbsp;full as of April 10.

"There's no available storage anymore so the price of the commodity is effectively worthless," said Bob Yawger, director of futures at Mizuho in New York. "So when it's minus a dollar, they'll pay you a dollar to get it out of there."

The price plunge was partly due to the way oil is traded. A futures contract is for 1,000 barrels of&nbsp;crude, delivered into Cushing, where energy companies own storage tanks with roughly 76 million barrels of capacity.

Each contract trades for a month, with the May contract due to expire on Tuesday. Investors holding May contracts didn't want to take delivery of the oil and incur storage costs, and in the end had to pay people to take it off their hands.

The June contract, with delivery a month away, is still trading at above $20 a barrel, but the price crash indicates that most storage space has been gobbled up.

WHAT DOES THIS MEAN FOR CONSUMERS?

The crash in&nbsp;crude&nbsp;futures prices at Cushing won't necessarily translate into a crash in prices at the gas pump, said Tom Kloza, a veteran analyst with Oil Price Information Services.

"I think it's more inside baseball," Kloza said. "We'll continue to see gasoline prices, diesel prices and jet fuel prices drift lower into May but one shouldn't conclude that we're going to see fuel given away or that we're going to match these incredible, unprecedented drops we saw in&nbsp;crude&nbsp;oil today," Kloza said.

With recent lower oil prices, the typical American family is probably going to save about $150 to $175 this month on their fuel purchases, he said.

WHAT DOES IT MEAN FOR AIRLINES?

For cash-strapped airlines, the decline in&nbsp;crude&nbsp;prices will make it cheaper to operate flights that are already nearly empty as people remain homebound due to the coronavirus.

The plunge in&nbsp;crude&nbsp;futures also indicates that the market does not expect airlines to add back many flights to their slimmed down networks any time soon, said Raymond James analyst Savanthi Syth.

WHAT DOES IT SAY ABOUT THE ECONOMIC REBOUND?

While investors and analysts wade through the technicalities of the oil markets that contributed to the crash, others are trying to glean what it might say about the economy. As much as 30 million barrels per day - what used to be 30 per cent&nbsp;of global demand - has been pumped into storage worldwide in the past two or three months.

Even if demand were to return to pre-virus levels, it would take a long time to burn off all that stored&nbsp;crude.

"What the energy market is telling you is that demand isn't coming back any time soon, and there's a supply glut," says Kevin Flanagan, head of fixed income strategy for Wisdomtree Asset Management, in New York.

The price of June&nbsp;crude&nbsp;contracts also dropped sharply on Monday, falling by 18.4 per cent&nbsp;to $20.43 a barrel. That's a more reliable view of how traders are thinking about consumer demand for energy in the immediate future. It isn't below zero, but it is falling rapidly.

The price of a barrel of benchmark US oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity.

The price of a barrel of benchmark US oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity. Such a steep drop in the oil benchmark prompted strong reactions beyond trading floors. Also read: Amid coronavirus pandemic, US benchmark WTI oil collapses to $0.01 a barrel Here is an explanation of what negative crude prices mean in the real world: WHAT DOES A NEGATIVE FUTURES PRICE MEAN? The price of a barrel of crude varies based on factors such as supply, demand and quality. Supply of fuel has been far above demand since the coronavirus forced billions of people to stop traveling. Also read: Oil prices tumble to $11 amid oversupply, fall in demand due to coronavirus Because of oversupply, storage tanks for WTI are becoming so full it is difficult to find space. The US Energy Information Administration said last week that storage at Cushing, Oklahoma, the heart of the US pipeline network, was about 72 per cent full as of April 10. "There's no available storage anymore so the price of the commodity is effectively worthless," said Bob Yawger, director of futures at Mizuho in New York. "So when it's minus a dollar, they'll pay you a dollar to get it out of there." The price plunge was partly due to the way oil is traded. A futures contract is for 1,000 barrels of crude, delivered into Cushing, where energy companies own storage tanks with roughly 76 million barrels of capacity. Each contract trades for a month, with the May contract due to expire on Tuesday. Investors holding May contracts didn't want to take delivery of the oil and incur storage costs, and in the end had to pay people to take it off their hands. The June contract, with delivery a month away, is still trading at above $20 a barrel, but the price crash indicates that most storage space has been gobbled up. WHAT DOES THIS MEAN FOR CONSUMERS? The crash in crude futures prices at Cushing won't necessarily translate into a crash in prices at the gas pump, said Tom Kloza, a veteran analyst with Oil Price Information Services. "I think it's more inside baseball," Kloza said. "We'll continue to see gasoline prices, diesel prices and jet fuel prices drift lower into May but one shouldn't conclude that we're going to see fuel given away or that we're going to match these incredible, unprecedented drops we saw in crude oil today," Kloza said. With recent lower oil prices, the typical American family is probably going to save about $150 to $175 this month on their fuel purchases, he said. WHAT DOES IT MEAN FOR AIRLINES? For cash-strapped airlines, the decline in crude prices will make it cheaper to operate flights that are already nearly empty as people remain homebound due to the coronavirus. The plunge in crude futures also indicates that the market does not expect airlines to add back many flights to their slimmed down networks any time soon, said Raymond James analyst Savanthi Syth. WHAT DOES IT SAY ABOUT THE ECONOMIC REBOUND? While investors and analysts wade through the technicalities of the oil markets that contributed to the crash, others are trying to glean what it might say about the economy. As much as 30 million barrels per day - what used to be 30 per cent of global demand - has been pumped into storage worldwide in the past two or three months. Even if demand were to return to pre-virus levels, it would take a long time to burn off all that stored crude. "What the energy market is telling you is that demand isn't coming back any time soon, and there's a supply glut," says Kevin Flanagan, head of fixed income strategy for Wisdomtree Asset Management, in New York. The price of June crude contracts also dropped sharply on Monday, falling by 18.4 per cent to $20.43 a barrel. That's a more reliable view of how traders are thinking about consumer demand for energy in the immediate future. It isn't below zero, but it is falling rapidly.

What is a negative crude future and does it mean anything for consumers?

Indian govt may not reduce fuel prices as demand is low despite low crude oil prices. The prices of fuel have not changed in last 36 days. It's because the govt 'starves' for the revenue due to nationwide lockdown.

Indian govt may not reduce fuel prices as demand is low despite low crude oil prices

Winners and losers from oil's historic plunge

<a href="https://www.wionews.com/business-economy/global-markets-bonds-reign-supreme-equities-struggle-on-recession-brexit-fears-246318">World stocks</a> set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in <a href="https://www.wionews.com/opinions/why-did-iran-and-us-step-back-from-all-out-war-273243">US-Iran </a>tensions and looked instead toward prospects of improved global growth.

Markets have swiftly reversed the sharp falls seen at the start of the week after the United States killed Iran's most senior general, as investors have concluded that a full-scale military confrontation is unlikely.

The MSCI world equity index, which tracks shares in 49 countries, has quickly resumed its rally and added another 0.12 percent&nbsp;on Friday to hit a new record high. It is almost 1.5 percent&nbsp;above the lows seen on Monday.

European shares also rose, although not quite hitting new records. The pan-European Euro Stoxx 50 gained 0.1&nbsp;and the German DAX 0.23 percent, while Britain's FTSE 100 was unchanged.

The three major share indexes on Wall Street touched new record highs on Thursday, and S&amp;P 500 futures were 0.28 percent higher, pointing to a stronger open ahead of all-important US&nbsp;non-farm payrolls data due at 1330 GMT.

A Reuters poll of economists is forecasting the <a href="https://www.wionews.com/opinions/could-a-weakening-us-economy-imperil-trumps-trade-war-against-china-226753">US&nbsp;economy</a> will have added 164,000 jobs in December, down from 254,000 in November, typically a strong month for hiring. Investors will also be focusing on underlying wage growth data for a gauge of underlying labour market strength.

Stock markets have got off to a decent start in 2019 despite US&nbsp;President Donald Trump's decision to kill military commander Qassem Soleimani, the second most powerful figure in Iran, in a missile strike in Baghdad.

FULL CIRCLE

"In the space of a few days we appear to have swung full circle; with investors seem convinced that the problems in the Middle East appear to have settled down, at least for the time being," said Michael Hewson, chief markets analyst at CMC Markets.

"Investors now have the opportunity to focus on the signing of the new <a href="https://www.wionews.com/world/no-phase-two-us-china-deal-on-the-horizon-officials-say-264312">US-China phase one trade</a> deal next week, as well as the health of the US&nbsp;economy today, and in particular the labour market which has continued to look resilient," he added.

Adding to the bullish mood, investors welcomed news that sales of Apple's iPhones in China in December jumped more than 18 percent&nbsp;on the year. They digested the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-U.S. trade talks, to Washington next week to sign a trade deal.

MSCI's emerging market currency index, although little changed on Friday, hit 1-1/2-year highs on Thursday in what is likely to be its sixth straight week of gains. It has also benefited from three US&nbsp;rate cuts last year.

Safe haven assets extended their drop.

Gold eased 0.1&nbsp;percent&nbsp;&nbsp;to $1,550 per ounce from a seven-year high of $1,610.90 hit right after Iran's missile attack on Wednesday.

Against the Japanese yen, which investors often buy in times of uncertainty, the US&nbsp;dollar strengthened 0.2percent&nbsp;&nbsp;to a two-week high of 109.65 yen.

The dollar was slightly firmer. The euro dropped 0.1percent&nbsp;to $1.1085, its lowest in about two weeks.

Oil prices, which briefly spiked at the start of the week on worries that tensions with Iran would disrupt global supplies, recovered some of their subsequent losses.

Brent crude rose 0.3&nbsp;percent&nbsp;&nbsp;to $65.57 a barrel and was heading for its first decline in six weeks and its biggest since October, down around 4.5%.

US&nbsp;crude oil rallied 0.22percent&nbsp;&nbsp;to $59.69 a barrel but was also on track for its first weekly drop in six, falling 5.3% from last Friday's close.

Government bond yields, which rose on Thursday as investors' nerves about the situation in the Middle East eased, edged lower on Friday.

The benchmark 10-year German bond yield fell marginally to -0.221 per cent but for the week remains up 6 basis points, in a strong signal of investors' willingness to pull back from safe-haven government debt for riskier assets.

The 10-year US&nbsp;Treasury yield slipped to 1.852 percent&nbsp;&nbsp;but it too remains up more than 6 basis points on the week.

"With risk appetite showing little sign of abating following another resurgent 24 hours in markets, the next potential hurdle to jump is the first payrolls Friday of the new decade," said Deutsche Bank macro strategists.

World stocks set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in US-Iran tensions and looked instead toward prospects of improved global growth.

World stocks set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in US-Iran tensions and looked instead toward prospects of improved global growth. Markets have swiftly reversed the sharp falls seen at the start of the week after the United States killed Iran's most senior general, as investors have concluded that a full-scale military confrontation is unlikely. The MSCI world equity index, which tracks shares in 49 countries, has quickly resumed its rally and added another 0.12 percent on Friday to hit a new record high. It is almost 1.5 percent above the lows seen on Monday. European shares also rose, although not quite hitting new records. The pan-European Euro Stoxx 50 gained 0.1 and the German DAX 0.23 percent, while Britain's FTSE 100 was unchanged. The three major share indexes on Wall Street touched new record highs on Thursday, and S&P 500 futures were 0.28 percent higher, pointing to a stronger open ahead of all-important US non-farm payrolls data due at 1330 GMT. A Reuters poll of economists is forecasting the US economy will have added 164,000 jobs in December, down from 254,000 in November, typically a strong month for hiring. Investors will also be focusing on underlying wage growth data for a gauge of underlying labour market strength. Stock markets have got off to a decent start in 2019 despite US President Donald Trump's decision to kill military commander Qassem Soleimani, the second most powerful figure in Iran, in a missile strike in Baghdad. FULL CIRCLE "In the space of a few days we appear to have swung full circle; with investors seem convinced that the problems in the Middle East appear to have settled down, at least for the time being," said Michael Hewson, chief markets analyst at CMC Markets. "Investors now have the opportunity to focus on the signing of the new US-China phase one trade deal next week, as well as the health of the US economy today, and in particular the labour market which has continued to look resilient," he added. Adding to the bullish mood, investors welcomed news that sales of Apple's iPhones in China in December jumped more than 18 percent on the year. They digested the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-U.S. trade talks, to Washington next week to sign a trade deal. MSCI's emerging market currency index, although little changed on Friday, hit 1-1/2-year highs on Thursday in what is likely to be its sixth straight week of gains. It has also benefited from three US rate cuts last year. Safe haven assets extended their drop. Gold eased 0.1 percent to $1,550 per ounce from a seven-year high of $1,610.90 hit right after Iran's missile attack on Wednesday. Against the Japanese yen, which investors often buy in times of uncertainty, the US dollar strengthened 0.2percent to a two-week high of 109.65 yen. The dollar was slightly firmer. The euro dropped 0.1percent to $1.1085, its lowest in about two weeks. Oil prices, which briefly spiked at the start of the week on worries that tensions with Iran would disrupt global supplies, recovered some of their subsequent losses. Brent crude rose 0.3 percent to $65.57 a barrel and was heading for its first decline in six weeks and its biggest since October, down around 4.5%. US crude oil rallied 0.22percent to $59.69 a barrel but was also on track for its first weekly drop in six, falling 5.3% from last Friday's close. Government bond yields, which rose on Thursday as investors' nerves about the situation in the Middle East eased, edged lower on Friday. The benchmark 10-year German bond yield fell marginally to -0.221 per cent but for the week remains up 6 basis points, in a strong signal of investors' willingness to pull back from safe-haven government debt for riskier assets. The 10-year US Treasury yield slipped to 1.852 percent but it too remains up more than 6 basis points on the week. "With risk appetite showing little sign of abating following another resurgent 24 hours in markets, the next potential hurdle to jump is the first payrolls Friday of the new decade," said Deutsche Bank macro strategists.

Stocks march back to record highs as Middle East tensions ease

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