On Wednesday (the 11th), Iran's military command warned that the world should prepare for oil prices soaring to $200 per barrel after they launched attacks on three merchant ships in the Persian Gulf. This escalation comes amid ongoing tensions, with Iran striking Israel and other targets in the Middle East, indicating its capacity to impact global energy supply in light of intensified US and Israel bombings which the Pentagon has deemed the most severe to date.

Despite an initial spike in oil prices earlier this week, a recent downturn has been noted, coinciding with a recovery in the stock markets. Investors are currently speculating that U.S. President Donald Trump will swiftly find a resolution to the warfare that has evolved alongside Israel over the past two weeks. However, as of now, there are no signs of a land ceasefire, nor indications that maritime navigation through the Strait of Hormuz—crucial for approximately 20% of the world's oil supply—might return to normalcy.

This situation reflects the worst disruption in oil supply, raising concerns about global energy stability. With such volatility in the market, the implications for both regional and global economies could be significant, as rising oil prices may lead to higher costs for consumers and businesses alike, potentially igniting inflationary pressures in various economies as they grapple with geopolitical instability and the wide-reaching effects of these Middle Eastern conflicts.