The United States has launched military strikes against Iran, citing Tehran's violation of a fragile ceasefire agreement.
President Donald Trump accused Iranian forces of launching drone attacks targeting commercial ships navigating the Strait of Hormuz, a critical chokepoint for global oil and gas transit.
The strikes mark a dramatic escalation in tensions, occurring during a designated 60-day period of no hostilities intended to facilitate peace talks between the two nations.
The immediate implication for markets is a severe spike in geopolitical risk premiums.
The Strait of Hormuz handles roughly a fifth of the world's oil consumption, and any disruption to vessel passage threatens to constrict supply flows.
Traders are likely to see heightened volatility in Brent crude and shipping freight rates as the probability of a prolonged transit disruption rises.