Oil Prices Cross $100 After 2022 Amid War Tensions, Pakistan and Bangladesh Feel the Heat

New Delhi: There has been a sudden sharp rise in the prices of crude oil in the global market. Due to the war between America, Israel and Iran, the price of crude oil in the international market has crossed $ 100 per barrel. It happened for the first time since 2022. There is increased nervousness in the market due to the fear of oil production and supply being affected in the Middle East due to the war.

Why did the price of oil increase?

According to experts, the threat to oil production centers and supply routes has increased due to the war. Global oil supply has been affected, especially due to the disruption of ship movement in the Strait of Hormuz region. This sea route is considered important for the transportation of about 20% of the world's oil.

Due to war and attacks, oil companies have reduced supplies and many tankers are avoiding passing through this route. Due to this, the price of Brent crude increased rapidly to above $100, while for some time it even went up to $110-119 per barrel.

Why will the crisis increase for Pakistan and Bangladesh?

Many countries in South Asia depend on imported oil for their energy needs. Increase in prices can put huge pressure on the economy of these countries. According to reports, Pakistan's monthly oil import bill could reach around $600 million, which could further deepen the economic crisis.

In countries with weak economies, the risk of inflation also increases due to costlier fuel. The increasing cost of power generation, transportation and industries has a direct impact on the common people.

What effect on the world economy?

The impact of the rise in oil prices is not limited to the energy market alone. Due to this, there is a possibility of an increase in inflation, a decline in stock market and pressure on global economic growth. Many Asian markets also declined as investors fear the energy crisis could worsen if the war continues for a long time.

How much can the price rise further?

Analysts believe that if tensions in the Middle East continue for a long time or oil supply routes are completely disrupted, the price of crude oil could go up to $120 or even higher. Some experts have warned that if the situation worsens, it may even reach 200 dollars per barrel.