Oil prices are heading toward their largest monthly increase on record amid market disruption linked to the ongoing conflict involving Iran, according to a report by The Guardian.
Brent crude has risen by about 51 percent since the start of March, surpassing the previous record of 46 percent set in September 1990 during the early stages of the Gulf War. It closed at $112.57 per barrel on Friday, compared to $72.48 on February 27, and reached a peak of $119.50 during the month, the highest level since June 2022.
The report said the surge was driven in part by concerns over potential disruption to shipping through the Strait of Hormuz, a vital route for roughly one-fifth of global oil and gas supplies, after Iran signaled possible closure during the escalation.
US crude also recorded sharp gains, with West Texas Intermediate rising about 48 percent in March, on track for its strongest monthly performance since May 2020 during the global pandemic.
The increase came despite a coordinated release of 400 million barrels from strategic reserves earlier in March. Analysts estimate that around 9 million barrels per day have been removed from global supply due to the Middle East conflict.
The report added that US President Donald Trump has struggled to calm markets, as initial signals of progress in negotiations briefly eased prices before renewed tensions pushed them higher again, alongside declines in global stock markets.
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