Iran-US Conflict Sends Oil Prices Soaring

The global oil market has been rattled by a renewed escalation of tensions between the United States and Iran, pushing prices up nearly 5% in a single session. The conflict centers around the Strait of Hormuz, a critical chokepoint for oil shipments, where US Central Command launched strikes against targets linked to Iran's Islamic Revolutionary Guard Corps on Tuesday.

The move was in response to IRGC attempts to attack civilian vessels and US military personnel stationed in the Middle East, according to Washington. Tehran immediately vowed retaliation, condemning the US strikes as 'an act of desperation' and saying it had launched strong retaliatory measures.

Markets are particularly concerned about potential disruptions to oil flows through the Strait of Hormuz, with Ole Hansen from Saxo Bank warning that 'long-term disruptions to energy supply flows through the Strait of Hormuz' could materialize.