Global oil markets experienced sharp gains this week as escalating conflict involving the Gulf states, the United States, and Israel rattled trading floors and raised the prospect of sustained supply disruptions. Brent crude futures, which serve as the international benchmark, jumped as much as 10–13%, briefly trading above $80 a barrel, while U.S. West Texas Intermediate (WTI) crude saw significant increases in response to geopolitical risks and disruptions to shipping through the vital Strait of Hormuz.

At the center of the market upheaval is the Strait of Hormuz crisis, triggered by aggressive Iranian retaliatory warnings effectively halting tanker traffic through the narrow waterway. The strait normally handles around 20 % of the world’s oil trade, making its dysfunction a major concern.

Some analysts now predict the possibility of prices reaching $100 per barrel or higher if the strait remains closed or if further attacks target regional energy infrastructure. Related markets have also been affected. Liquefied natural gas (LNG) prices in Europe and Asia spiked as Qatar temporarily shut down part of its output following attacks on facilities, leading to benchmark gas prices jumping more than 40 % in some markets.