Oil prices surge as Iran war threatens global shipping through the Strait of Hormuz, sparking fears of economic disruption. The US-Israeli strikes on Iran have sent shockwaves through global markets, with Brent crude jumping 13% to $82 per barrel, a 14-month high. This effective closure of the Strait of Hormuz, a vital artery for global trade, has intensified concerns over oil supplies. The impact is felt across Asia, with the Nikkei 225 falling 2.4% and the ASX 200 opening sharply lower. Gold, a safe-haven asset, rises 2.8% to $5,397.10 per ounce. The military strikes show no signs of abating, with Donald Trump suggesting the conflict could last for four more weeks. While oil prices have slightly retreated from their initial highs, Brent crude remains up 4% during early trading. The focus is on the Strait of Hormuz, where about a fifth of oil supplies and seaborne gas tankers pass through. Tehran has warned tankers not to pass through, and two ships have already been attacked in the strait. Marine tracking sites show tankers piling up on either side, wary of attack or unable to get insurance. The International Maritime Organization urges ships to avoid the strait, and Maersk, a shipping multinational, has halted passage through the strait and the Suez canal, citing 'safety' concerns. The OPEC+ cartel agreed a modest oil output boost, but any disruption to Iran's shipments could impact the wider market. With 15 million barrels per day of crude oil at stake, the halt of traffic through the Strait of Hormuz is a significant development for oil markets. 'Unless de-escalation signals emerge swiftly, we expect a significant upward repricing of oil,' says Jorge León, the head of geopolitical analysis at Rystad Energy. But here's where it gets controversial... The impact of the war on oil prices and global shipping is a complex issue, and the situation is far from clear. What do you think? Will the conflict escalate further, or will it de-escalate? Share your thoughts in the comments.
