Hormuz Crisis Prices Oil Market into New Reality

The conflict between the US and Iran has been ongoing for nearly six months, and it's becoming increasingly clear that disruptions to Middle East energy supplies are not a temporary shock but a new reality. The Strait of Hormuz, the world's most important oil chokepoint, is at the center of this crisis.

Iran warned on Monday that it would escalate tensions unless Washington fully implemented an interim peace deal within weeks. However, US President Donald Trump has since stated that the pact was 'over.'

This stalemate is forcing traders to contend with restrictions on shipping through the Strait of Hormuz, which could persist for months. As a result, crude oil prices have stabilized around $90 a barrel, roughly 50% higher than at the start of the year.