Oil prices surged significantly due to the ongoing US-Israeli war against Iran, which has led to the effective closure of the Strait of Hormuz, a critical global oil chokepoint. Brent crude rallied up to 13% to above $82 a barrel, the highest since January 2025.
Key points
- Tanker traffic through the Strait of Hormuz, which handles a fifth of the world's oil, has largely halted due to a self-imposed pause by shipowners and traders.
- Iranian authorities claimed the waterway remained open while also stating they attacked three oil tankers.
- President Donald Trump stated US forces destroyed and sank nine Iranian naval ships, vowing combat operations would continue.
- OPEC+ agreed to increase supply quotas next month by 206,000 barrels a day in reaction to the conflict.
Why it matters
The conflict marks a dangerous new phase for the global oil market, causing the most significant surge in oil prices in four years.
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