Oil prices surge amid Middle East tensions

Oil prices surged as much as 13 percent on Sunday amid escalating tensions in the Middle East, following U.S. and Israeli strikes on Iran.

The tensions have brought oil and gas transport through the Strait of Hormuz to a virtual standstill. As the world’s most crucial energy chokepoint, the strait handles roughly one-fifth of global crude oil and significant natural gas flows. According to market analysis, any long-term interruption would intensify risks to global energy security and further fuel price instability.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC plus, on Sunday decided to ramp up oil output by 206,000 barrels per day in April. The announcement was made after a virtual meeting where member countries, reviewed global market conditions and outlook.