Oil prices experienced a sharp rise of up to 13% on Monday, driven by escalating tensions following US-Israeli strikes on Iran. The conflict has generated widespread apprehension about potential disturbances to global economic stability. The attacks have particularly affected tanker traffic through the Strait of Hormuz, a strategic waterway that facilitates about 20% of the world's oil and gas supply. Reports suggest that, despite Iranian officials claiming the waterway remains operational, shipping activities are largely halted due to the heightened risk of attacks.

Brent crude oil prices reached a peak of $82 per barrel on the ICE exchange, marking a significant increase and reaching a 14-month high during these turbulent events, before retracting slightly to around $79.5 as market reactions settled. The situation surrounding the Strait of Hormuz remains critical, with the UK Maritime Trade Operations Centre reporting attacks on two ships in the area, alongside other incidents reported by Oman’s Maritime Security Center.

These developments underscore the vulnerability of global oil markets to geopolitical tensions in the Middle East, with potential implications for energy prices and economies dependent on oil imports. The international community is likely to monitor the unfolding situation closely, weighing responses that could either escalate or de-escalate the conflict, while considering the broader impact on global energy security.