Crisis in the Strait of Hormuz Sends Shockwaves Through Global Markets

For the first time since 2022, oil prices have soared over $100 a barrel as the conflict between the US and Israel against Iran disrupts international energy supplies. Nearly 20 million barrels per day have disappeared from the market, and the Strait of Hormuz, which accounts for roughly 20% of the world's oil, is essentially closed off.

Brent crude has surged past $108, while US WTI has risen above $105. Stock markets throughout Asia have fallen sharply as concerns about an extended supply crisis increase. Iran has cautioned that prices could escalate to $200 per barrel if the fighting persists, while Gulf states are facing storage challenges and immobilized tankers.

Governments are racing to control fuel prices, tap into reserves, and avert a more extensive economic fallout.

Is this merely a short-lived surge, or are we witnessing the onset of a global energy crisis?