• Oil prices surged past $120 per barrel amid fears of prolonged supply disruptions.
• Trump's blockade on Iranian ports continues to tighten global energy supplies.
• The UAE's withdrawal from OPEC has raised questions about market stability.
• Little resolution appears likely in negotiations over Iran's nuclear program.
• Analysts predict global inflation may rise due to sustained high oil prices.

Global oil prices have surged past $120, marking their highest levels since 2022, as fears of prolonged supply disruptions intensify amid the ongoing US-Iran conflict. Brent crude prices rose about 1.9% to nearly $120 per barrel, while US West Texas Intermediate (WTI) increased to approximately $107. Reports indicate that the US blockade on Iranian ports is severely constraining oil supplies, affecting global markets significantly, according to India Times and BBC.

The surge in oil prices is largely attributable to the potential military action the US might take against Iran. Reports suggest that US Central Command has formulated plans for "short and powerful" strikes aimed at facilitating negotiations on Iran's nuclear program, further escalated by Trump's statement regarding a prolonged naval blockade of Iran until negotiations take a favorable turn for the US interests, as noted by Al Jazeera and South China Morning Post.

Concerns regarding the Strait of Hormuz, a crucial maritime route for approximately a fifth of the world's oil supply, have been heightened as Iranian forces restrict shipping in response to US activities. The prospect of downturns in Iranian oil exports is elevating anxieties about global energy supply stability, particularly as both Brent and WTI prices reflect substantial increases; Brent crude has more than doubled since the conflict escalated, reaching an all-time high since June, according to Al Jazeera, India Times, and South China Morning Post.

In light of the UAE's recent exit from OPEC, which may further complicate efforts to stabilize oil prices, analysts warn of the potential for inflation to rise due to consistently high energy costs. Trump's discussions with oil executives last week focused on strategies to mitigate the possible months-long impacts of the blockade, indicating that overarching concerns about the Iran conflict may diminish the viability of OPEC+ market control amid this geopolitical strife, as stated by Al Jazeera and South China Morning Post.