Oil prices have skyrocketed above $107 a barrel—the highest level since 2022—as escalating conflict in the Middle East disrupts global energy markets. The crisis deepened following US-Israeli airstrikes, prompting Iran to threaten closure of the strategic Strait of Hormuz, through which 20% of the world’s oil typically passes.

Maritime data shows roughly ten vessels have been attacked near the waterway, with tanker traffic plummeting by approximately 90% over the past week. Political uncertainty has compounded the crisis, as Iran appoints the late Supreme Leader’s son as the new head of the Islamic Republic. While a Revolutionary Guards commander vowed to “burn any ship” attempting to cross, Iran’s foreign minister insists Tehran has “no intention” of closing the strait. Analysts warn markets are bracing for extreme volatility as supply disruption risks mount.

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