Oil prices jump 5pc as Middle East tensions fuel market uncertainty

2026-03-27 - 08:11

LONDON – Global oil prices extended gains on Thursday as the ongoing conflict in the Middle East and uncertainty over ceasefire negotiations continued to unsettle markets. Brent crude rose by around five per cent in international trading, reaching $108 per barrel, according to a report by the BBC. The benchmark had closed at $102 per barrel in the previous session, marking a sharp increase within a day. The analysts attributed the surge to conflicting statements from Iran and the United States regarding potential ceasefire talks, which have added to market uncertainty. Despite Iran allowing several oil tankers to transit through the key shipping route of the Strait of Hormuz, prices continued to climb as fears over supply disruptions persisted. More than three weeks into the conflict, formal ceasefire negotiations have yet to begin. The US President has warned that the current moment could represent a final opportunity for Iran to engage in dialogue. Meanwhile, the global financial group MUFG said that mixed signals surrounding both the conflict and diplomatic efforts have deepened uncertainty in global markets, contributing to continued volatility in oil prices. Putin warns Iran conflict could hit global economy like pandemic Vladimir Putin has warned that the ongoing conflict involving Iran, the United States and Israel could disrupt the global economy on a scale comparable to the COVID-19 pandemic. Speaking at a major gathering of Russian industrialists and business leaders in Moscow, Putin said the conflict in the Middle East was already damaging international production and logistics systems. He noted that key sectors including oil and gas, metals, fertilisers and other critical industries were directly being affected by the crisis. Putin said early assessments were drawing comparisons with the COVID-19 pandemic, which had slowed economic growth across all regions of the world. He warned that if the conflict continues, global supply chains could face further disruption, increasing economic uncertainty worldwide. The Russian president also cautioned his government and energy companies against spending revenues from rising oil prices imprudently, urging a cautious fiscal approach. “Rather than seeking short-term gains, a prudent financial policy must be adopted, as global markets can shift at any time,” he said. Putin added that despite challenges and sanctions, Russia had managed to maintain economic stability, but stressed the need for greater resilience and unity in view of evolving global conditions. He also emphasised that without sovereignty, no country can effectively safeguard its core interests, adding that this principle applies across sectors including the economy, transport, logistics and financial systems.