LONDON, United Kingdom — Global oil prices dipped below the $100-per-barrel mark on Friday, providing a brief reprieve for jittery markets even as the conflict in the Middle East enters its third week. Despite the slight cooling of crude prices, energy remains significantly higher than pre-war levels, maintaining pressure on global inflation and supply chains.
The shift in energy costs allowed equity markets to finish in the green, recovering ground lost earlier in the week when investors feared a prolonged regional crisis. Analysts noted that while the release of strategic oil reserves and a temporary relaxation of certain sanctions helped stabilize prices, the situation remains highly volatile with no clear end to the disruption of crude supplies in sight.
“Crude oil is continuing to dictate direction for markets as we head towards the end of a volatile week,” said Fawad Razaqzada, a market analyst with Forex.com. “Traders are trying to figure out what a fair value for crude oil is right now.”
In the Philippines, the impact remains acute. Local fuel prices are expected to see a massive hike of up to ₱22.30 per liter on March 17, reflecting the previous week’s price surges. The Bangko Sentral ng Pilipinas is also being closely watched, as sustained energy costs may force a freeze on interest rate cuts or even lead to further hikes to manage rising inflation.
As the US-Israeli conflict involving Iran continues to upend energy markets, the Strait of Hormuz—a vital artery for 20% of the world’s crude—remains a primary concern for global trade. Financial experts warn that until a clear resolution is reached, the “risk-off” sentiment will likely return at any sign of further escalation.