Iran Conflict Sends Oil Prices Soaring Amid Global Supply Disruptions

President Trump's decision to go to war with Iran has introduced significant instability in global markets, according to Ryan Lewenza of Turner Investments. The conflict has disrupted shipping routes through the Strait of Hormuz and the Bab el-Mandeb Strait, affecting approximately 20% of the world's oil and natural gas supplies.

The closure of these critical maritime chokepoints has led to a surge in oil prices from around $70 per barrel at the start of the month to over $90 per barrel today. Higher crude oil prices will likely translate into increased gasoline prices for consumers, exacerbating existing inflationary pressures.

The U.S. Strategic Petroleum Reserve (SPR) has fallen by roughly 50% from its peak and sits at its lowest level since 1983, raising concerns about the risk of approaching 'tank bottoms', the minimum operating level below which oil cannot be practically withdrawn from storage facilities.