Oil Prices Surge Amid Middle East Tensions and Supply Disruptions

May 18, 2026

66 min

May 18, 2026 01:30

Oil prices up sharply as traders weighed ongoing supply disruptions, benchmark crude contracts further above the $100/barrel mark

## Rising Oil Prices

Oil prices experienced a significant increase on Monday as traders assessed the impact of ongoing supply disruptions and tightening global inventories. The benchmark West Texas Intermediate (WTI) crude rose by $1.22, reaching $106.64 per barrel, while Brent crude increased by $1.03 to $110.29 per barrel.

## Supply Concerns

The volatility in energy markets is largely due to uncertainties surrounding the Strait of Hormuz, a vital route for global oil exports. Moody's Ratings highlighted that disruptions in this key shipping lane could have long-term implications for global trade and energy markets.

## Impact on Global Inventories

The International Energy Agency (IEA) reported a record decline in global oil inventories, with over 14 million barrels per day affected by restricted tanker traffic and infrastructure issues in the Gulf region. Despite these challenges, traders are primarily focused on immediate supply risks rather than potential decreases in demand.

## Regional Crude Benchmarks

Among regional crude benchmarks, Western Canadian Select saw a 4.78% increase to $93.07 per barrel, while Louisiana Light rose by 1.42% to $104.52. In contrast, Russia's Urals crude experienced a slight decline, dropping 0.81% to $96.72.

## Broader Economic Implications

The rise in oil prices has also led to higher retail gasoline prices, contributing to global inflationary pressures and complicating economic strategies for central banks.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents