Middle East conflict | SA braces for historic fuel prices

JOHANNESBURG – Brent crude has climbed above $100 a barrel as the conflict between the United States, Israel and Iran intensifies. 

Prices rallied as much as 29 percent driven by production cuts across the Middle East and disruptions in the Strait of Hormuz.

Global energy markets are surging, recording the largest one-day gain since April 2020 and reaching the highest price level since June 2022.

In Kuwait, authorities have begun reducing output at oil fields and refineries.

WATCH: SA vulnerable in face of oil supply shock

The United Arab Emirates says it is adjusting offshore production to manage storage needs while keeping onshore operations running normally.

Meanwhile, Iraq has seen a sharp decline in production from its three main southern oilfields.

Output has dropped by 70 percent falling to 1.3 million barrels per day from the 4.3 million before the conflict.

Adding to the pressure, Qatar cut LNG production last week, further tightening global supply.