Hormuz Blockade Sends Oil Prices Soaring Amid Middle East Conflict

The Middle East conflict has sent oil prices surging as Brent crude jumped as much as 18% in two days, surpassing $85 a barrel for the first time since July 2024.

The Strait of Hormuz, through which one-fifth of the world's oil passes, remains inactive due to the conflict, with excess supplies elsewhere helping to limit the price surge so far.

Saudi Arabia is exploring options to deliver more barrels from the Red Sea as a result of the blockade, while China and Indonesia are seeking alternative crude sources.

The International Energy Agency (IEA) has signaled its readiness to help stabilize the global oil market in the wake of the conflict, but prices remain volatile with Brent's prompt spread widening to $2.87 a barrel in backwardation.