The energy market is on high alert as European natural gas prices skyrocketed by 32% on Tuesday morning, while Brent crude saw an almost 10% increase this week. This surge comes amidst escalating tensions due to the US-Iran conflict, which threatens the Strait of Hormuz, crucial for global oil and LNG trade as it accounts for approximately 20% of the world's oil consumption. The increased volatility has triggered significant concern over energy supply security.

Additionally, the freight cost for Very Large Crude Carriers (VLCCs) transporting two million barrels from the Middle East to China has reached a historical high, soaring to approximately $423,736 per day according to data from the London Stock Exchange Group. This marks a drastic increase, effectively doubling since Friday, in response to military strikes conducted by the US and Israel on Iran and Tehran's subsequent declaration that it would retaliate against vessels attempting to navigate the Strait.

The situation reflects broader geopolitical tensions and the potential for supply disruptions in global energy markets, with Iranian media claiming that the Strait is effectively closed. As such, the implications for global shipping routes and energy prices are considerable, potentially leading to further instability in both energy and maritime markets.