The ongoing conflict between Iran and the US-Israel coalition has led to a virtual halt in maritime traffic in the Strait of Hormuz, a critical chokepoint for global oil supplies. This disruption has significantly reduced oil production in the Middle East, causing prices of oil and liquefied natural gas (LNG) to soar dramatically. Monday morning marked a shocking surge in oil prices, increasing by 30% to over $100 per barrel, levels not seen in many years, which can be attributed to escalating tensions in the region.

The price spike was preceded by a steep increase during the previous week due to US and Israeli airstrikes targeting significant Iranian sites, culminating in the assassination of Iran's spiritual leader, Ali Khamenei. In response to this crisis, the Brent crude oil, primarily monitored in Europe, saw a 29% increase, while the West Texas Intermediate (WTI) benchmark surged by 35.6%. This drastic rise reflects market anxiety over the stability of oil supply chains and potential further escalations in regional conflicts.

Further exacerbating the situation is the selection of Mojtaba Khamenei as the new religious leader of Iran, who is reported to hold even more conservative views than his predecessor. This development raises concerns about the future of US-Iran relations and the possibility of further actions that could disrupt oil supplies through the Strait of Hormuz, emphasizing the ongoing vulnerabilities in global energy markets and the imminent risk of a broader energy crisis as geopolitical tensions escalate.