Iran-US Tensions Spark Global Oil Price Surge

Global oil prices surged on Wednesday as tensions between Iran and the US escalated. The fragile three-day pause in hostilities came to an abrupt end when Iran launched a barrage of missiles targeting American forces in the Middle East.

In response, the US military conducted joint strikes alongside Saudi Arabia against Tehran-backed militias in Iraq, reigniting fears about global energy supply lines. The Strait of Hormuz, which handles around 20% of the world's daily oil supply, has seen maritime traffic slow to a trickle since the onset of the war.

The instability in crude prices has stoked fears among economists that global inflation could reaccelerate, undoing recent progress made during the brief period when hopes for a lasting ceasefire were high.