Iran's Warning Sends Oil Prices Soaring Amid Geopolitical Tensions

Oil prices surged yesterday after reports emerged that Iran had warned Gulf states their oil, power, and water facilities could be targeted unless they help end US strikes on Iran.

The warning from Iran sent shockwaves through the energy market, with WTI climbing 3.5% to $77.83 and Brent adding 4.2% to $82.77 as traders priced in higher security risk around the Strait of Hormuz.

Markets tend to treat the strait as a critical choke point for global energy supplies, and any disruption can lead to a 'risk premium' being added to oil prices.