Crude oil prices have rallied sharply, reaching a two-week high of over $106 per barrel, driven by escalating geopolitical tensions in West Asia, especially between the United States and Iran. The situation has been exacerbated by attacks on vessels in the Strait of Hormuz and stalled diplomatic negotiations, leading to significant supply disruptions. The International Energy Agency (IEA) reports that approximately 10 million barrels per day of oil supply has been affected due to the ongoing conflict, marking the largest supply disruption in history. Despite a modest increase in Russia's oil production, the global market remains tight, with OPEC producers experiencing a 27% drop in crude production in March. The US Energy Information Administration (EIA) reported a rise in crude inventories, reflecting some resilience in the domestic market. However, the IEA has revised its 2026 demand outlook downward, projecting a contraction of 80,000 barrels per day. As refinery margins surge, consumers may face higher gasoline and diesel prices, further straining economic conditions. The outlook remains uncertain, with potential for prices to exceed $112 if tensions escalate further.