Global oil prices surged after escalating conflict involving Iran, the US, and Israel raised fears over the security of the Strait of Hormuz — a key shipping route for nearly 20% of the world’s oil and gas supply.
Brent crude jumped 10%, briefly surpassing $82 per barrel before easing to around $79. US-traded oil rose by 7.6% to $72.20. The spike followed reports that at least three vessels were attacked near the strait, with two ships struck by projectiles and another explosion reported nearby.
Shipping traffic has slowed dramatically, with over 150 tankers anchoring outside the strait due to security risks and soaring insurance costs. Analysts warn that if the waterway remains effectively closed, oil prices could exceed $100 per barrel.
Stock markets reacted cautiously. London’s FTSE 100 opened nearly 1% lower, while airline shares fell amid widespread Middle East airspace closures.
Energy experts say the market is not yet in crisis mode, but prolonged instability could push inflation higher and complicate interest rate decisions globally. Opec+ has agreed to increase production by 206,000 barrels per day to help stabilise supply, though analysts question whether it will be enough if disruptions continue.
