Global oil markets were rattled on Monday, June 23, as Brent crude prices surged by over 5% following a significant geopolitical development in the Middle East.
The swift military action marks a sharp turn in the ongoing conflict between Israel and Iran, with Washington’s involvement signaling a potential for broader regional instability.
Analysts warn that if Iran chooses to respond militarily, it could jeopardize the safety and flow of oil through the Strait of Hormuz; a critical maritime chokepoint through which nearly a third of the world’s seaborne crude oil passes.
The surge in oil prices reflects the fragility of energy markets and how quickly geopolitical shocks can impact the global economy.
Energy experts suggest that if tensions continue to escalate, oil prices could climb further, placing additional pressure on global inflation and economic recovery efforts.