Brent crude oil prices have seen a significant increase to $104.70 per barrel after starting the day with a rise of $0.80. This spike can be traced back to the onset of the Iran war, where prices have surged from $73, reaching over $119 at their peak. The recent escalation followed U.S. airstrikes on military installations on the Iranian island of Kharg, which is home to critical oil facilities. As a result, the market is reacting with heightened concerns over supply disruptions in the region.

Market analysts highlight two major fears influencing oil prices at this moment. The first is whether Iran will manage to sustain a long-term closure of the Strait of Hormuz, a vital maritime route that facilitates the transport of oil and gas from the Middle East. This concern is compounded by former President Trump's calls for international assistance to keep the strait open, indicating potential for increased geopolitical tensions.

Furthermore, there is substantial apprehension regarding the security of oil infrastructure in the region, particularly in light of potential attacks, as noted by energy analyst Ole Hvalbye from SEB. He indicated that losing key infrastructure and export capacity in the Middle East could have far-reaching consequences, not just for Iran but for global energy markets as a whole, referring to this threat as 'Iran’s weapon' in the ongoing conflict.