Oil prices have surged again as the war in the Middle East continues to disrupt global energy supply.
According to Trading Economics, West Texas Intermediate (WTI) crude rose 1.06% to US$99.75 per barrel, while Brent crude is trading above US$103 per barrel. Prices have rallied sharply since the conflict began in late February.
The rise in oil has also pushed broader commodity markets higher, lifting products linked to diversified commodity indices such as the Global X Bloomberg Commodity Complex ETF (ASX: BCOM).
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War in the Middle East hits global oil flows
The latest rally follows a significant disruption to global energy supply caused by the ongoing war involving Iran, the United States, and Israel.
The Strait of Hormuz, a narrow shipping lane between Iran and Oman, normally carries around 20 million barrels of oil per day, representing roughly 20% of global oil trade.
Since the conflict escalated, tanker traffic through the strait has collapsed and maritime shipments have slowed dramatically.
The International Energy Agency (IEA) estimates that oil production across Gulf states including Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates has already been reduced by at least 10 million barrels per day. This makes it the largest supply disruption in the history of the oil market.
Oil prices briefly surged as high as US$119 per barrel earlier this month, the highest level since 2022, before easing slightly.
Several oil export facilities have also been affected by military strikes and attacks on infrastructure. In one incident, a fire at the Fujairah oil hub in the United Arab Emirates forced loading operations to stop at a port that previously exported around 1.7 million barrels per day.
Commodity markets move higher alongside oil
The rise in oil prices has contributed to gains across the broader commodity complex.
One investment reflecting this move is the Global X Bloomberg Commodity Complex ETF.
The BCOM share price closed at $13.22 on 13 March, up 1.38% for the day. Over the past month the ETF has risen 10.44%, while its 1-year return is 14.96%.
The ETF tracks the Bloomberg Commodity Index, which includes exposure to a diversified group of commodities across multiple sectors.
These include energy products, precious metals, industrial metals, agricultural commodities, grains, and livestock.
This broad exposure distinguishes it from many commodity ETFs that track a single market such as gold, oil, or agriculture.
Oil markets remain sensitive to developments
Oil markets remain highly sensitive to developments in the Middle East war.
The IEA has already coordinated the release of around 400 million barrels of oil from strategic reserves in an effort to stabilise global markets.
However, analysts warn that strategic reserves can only offset supply losses for a limited period if shipping through the Strait of Hormuz remains restricted.
With oil now trading close to US$100 per barrel, the conflict has become a major driver of commodity prices and global energy markets.
