The US-Israeli strike on Iran has ignited widespread fears in global energy markets about a significant spike in prices if oil and gas supplies were to be disrupted, especially with the possibility of navigation in the Strait of Hormuz coming to a halt. The Financial Times reported that a primary concern lies in Iran's ability to control navigation in this crucial waterway, through which a significant portion of Gulf nations' oil and liquefied gas exports transit, further exacerbated by fears that Iranian-aligned armed groups might target energy infrastructure in the Gulf region.

The Strait of Hormuz sees an enormous volume of traffic, with around 21 million barrels of oil passing through daily, amounting to nearly one-third of global crude oil exports, according to the Financial Times. Additionally, approximately 20% of the world's liquefied natural gas exports also pass through this strategic strait. In the aftermath of these geopolitical tensions, the price of Brent crude oil surged to a seven-month high of $73 per barrel on Friday, with an overall increase of nearly 12% in the last month, fueled by growing expectations of a potential war between Tehran and Washington.

The implications of this situation extend beyond immediate pricing concerns, as the possibility of conflict could have far-reaching effects on the global economy. With an estimated three-quarters of crude oil exports from Gulf nations dependent on the stability of the region, any disruption could lead to a global energy crisis, affecting not just prices but also the supply chains reliant on these energy resources. As tensions rise, monitoring situations in the Gulf becomes crucial for economies worldwide, as the outcome of these tensions may dictate future energy policies and market stability.