Oil Price Surges in Wake of Iran War

Just over a week since Israel and the U.S. launched a war against Iran, international shipping has almost come to a halt at the entrance of the Strait of Hormuz, through which transits close to 27 percent of the world's maritime oil trade. The impact of the instability in the region on oil prices was swift: in the days following the first strikes, the price of Brent crude jumped by 10 percent. Ten days later, the price of a barrel of Brent crude oil has reached $108, exceeding the $100 mark for the first time since August 2022, according to data from investing.com.

Analysis from Rapidan Energy Group picked up by CNN and CNBC shows that an estimated 20 percent of the world's oil supply has been disrupted by the ongoing conflict. That’s more than double the previous record set during the Suez Crisis of 1956-1957. Gas prices in the U.S. have now increased nearly 50 cents, or around 17 percent, since the beginning of the war on Iran.