Crude oil prices have nearly doubled since the start of the year, surging above $108 per barrel as Middle East tensions and supply disruptions reshape global economics.

Crude oil prices have nearly doubled since the start of the year, surging above $108 per barrel as Middle East tensions and supply disruptions reshape global economics. The closure of the Strait of Hormuz, through which one-fifth of global crude normally flows, has created the largest supply shock in decades. While U.S. shale and Brazilian producers have increased exports, they cannot fully replace Gulf volumes, leaving markets tight and prices elevated. Oil importing nations like India, Japan, and Europe face widening trade deficits, currency weakness, and household budget strain. Airlines, shipping, and manufacturing industries are experiencing shrinking margins. Conversely, exporters including Saudi Arabia, Russia, and Brazil enjoy windfall revenues and stronger fiscal positions.