Iran Conflict Drives Global Energy Prices to New Heights

Escalating tensions between US and Iran have pushed global energy prices to new heights, sparking concerns of stiffer inflation risks and a bond rout. After a quieter stretch, US forces carried out fresh wave of assaults on Iranian assets over a three-day span, targeting radar installations and mine-laying gear along Iran's southern coast.

Iran retaliated with drone and missile barrages at US bases across the Middle East, hitting sites in Kuwait, Jordan, Bahrain, Iraq, and the United Arab Emirates. The six-month standoff has squeezed exports through the Strait of Hormuz, a critical chokepoint for energy flows, already handling roughly 20% of global crude and LNG shipments.

Brent crude prices hovered near $95 a barrel on Wednesday morning in London, up 6.6% for the week, as fears over Persian Gulf supplies pushed prices closer to $100. European natural gas futures touched a three-year high, climbing 11% this week.