Oil prices have remained highly volatile since the conflict began at the end of February, with geopolitical tensions repeatedly driving sharp movements in global crude markets.
Oil prices have experienced major swings this century, ranging from record highs of nearly $150 per barrel in 2008 to briefly falling below zero during the Covid-19 pandemic in 2020.
Oil prices climbed above $100 per barrel shortly after the US-Iran conflict began on February 28, with the Strait of Hormuz effectively blocked. The strategic waterway accounts for the transit of nearly 20 per cent of global oil supplies.
Brent crude reached a peak of $126.41 per barrel in late April, while US West Texas Intermediate (WTI) rose to $119.48 per barrel in early March.
Prices eased in June amid hopes of de-escalation, weaker Chinese demand and a major release of strategic oil reserves by several countries.
Crude prices subsequently fell below pre-war levels after Iran and the United States signed a Pakistan-mediated memorandum of understanding aimed at ending the conflict.
However, renewed US-Iran strikes across the region have pushed Brent crude back above $100 per barrel, while WTI has traded around $95.
Crude prices crossed the $100 mark in February 2022, shortly after Russia, one of the world’s major oil producers, invaded Ukraine.
Prices surged further in March, with Brent reaching $139.13 per barrel and WTI climbing to $130.50, approaching the record levels recorded in 2008.
Concerns over global oil supplies intensified after Western countries imposed sanctions on Russia. Strong demand following the Covid-19 pandemic also contributed to higher prices, which remained mostly above $100 until mid-2022.
Prices later declined as global supplies increased.
Oil prices briefly turned negative in 2020 as the Covid-19 pandemic brought economic activity to a standstill, forcing offices and factories to close and grounding flights worldwide.
Limited storage capacity, combined with a price war between Saudi Arabia and Russia, added to the market turmoil.
WTI fell as low as minus $40.32 per barrel, meaning sellers effectively paid buyers to take crude off their hands.
Brent crude also plunged to a record low of $15.98 per barrel.
Oil prices, which had fallen below $90 amid the eurozone economic crisis, climbed back above $100 after Western countries imposed extensive sanctions on Iran, including restrictions on its crude exports, in an effort to pressure Tehran over its nuclear programme.
Growing tensions in the Middle East, including the conflict in Syria, kept prices largely above $100 until 2014.
Prices subsequently fell below $50 at the beginning of 2015 as a surge in US shale oil production increased global supplies.
Brent crude surged to $127 per barrel in March 2011 as political unrest spread across major oil-producing areas of the Middle East and North Africa.
The so-called Arab Spring uprisings toppled the long-standing governments of Tunisia, Egypt and Yemen and triggered instability across the region. Libya, a major oil producer, was particularly affected, adding to concerns over global supplies.
Brent crude reached a record high of $147.50 per barrel on July 11, 2008, after surpassing the $100 mark for the first time earlier that year.
US WTI also reached an all-time high of $147.27 per barrel on the same day.
The surge was driven by declining US oil inventories, strong demand from China and political tensions in key Opec members Iran and Nigeria.
A weaker US dollar also supported prices by making dollar-denominated crude cheaper for buyers using other currencies.
However, the rally was short-lived. By December 2008, Brent had plunged to around $36 per barrel as the global financial crisis triggered a severe worldwide recession and sharply weakened demand.
