Oil prices jumped sharply on Monday as Iran expanded its military strikes on Gulf states following recent attacks by the United States.
The escalation directly threatens energy shipments through the Strait of Hormuz, the world’s most critical oil transit chokepoint.
This development marks a significant deterioration in regional stability, moving beyond earlier warnings about tanker routes to active conflict involving key energy infrastructure.
Brent crude and WTI futures rose in response to the heightened geopolitical risk.
The market is repricing the probability of a supply disruption, with traders closely monitoring the status of shipping lanes and potential insurance premium spikes.
The immediate concern is not just the volume of oil currently in transit, but the potential for a prolonged closure or severe restriction of the Strait, which handles roughly a fifth of global oil consumption.