Crude costs surge at the start of trading as Mideast conflict escalates

As Sunday's markets commenced, oil prices continued their upward trajectory, driven by the ongoing conflict in the Middle East, which is severely impacting global oil supplies.

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The US benchmark West Texas Intermediate experienced a slight increase of 0.01 percent, reaching $98.72 per barrel at approximately 0015 GMT, while the international benchmark Brent saw a more significant rise of 0.6 percent to $103.76.

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Meanwhile, in early Asian trade, South Korea's Kospi index made a tentative recovery, gaining 1.3 percent, whereas Japan's Nikkei remained stagnant.

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The current geopolitical tensions have led to a substantial surge in oil prices, with a 40 to 50 percent increase since the US and Israel launched their attack on Iran on February 28, as Gulf states reduce production and oil tankers are unable to navigate the Gulf.

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Investors are growing increasingly concerned that the escalating oil prices will have a detrimental effect on economic growth and exacerbate inflation.

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The Strait of Hormuz, a critical waterway responsible for the transit of 20 percent of global oil and gas exports, remains effectively closed.

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US Energy Secretary Chris Wright downplayed the situation, describing the closure of the Strait as "short-term pain" that is driving up prices, and expressed optimism that the conflict could be resolved "in the next few weeks."

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The International Energy Agency has issued a dire warning, stating that the war in the Middle East is generating the most significant supply disruption in the history of the global oil market.

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The US and Israeli strikes on Iranian targets, including the key oil export hub of Kharg Island, have further disrupted oil supplies, compounding the existing challenges.