Middle East Tensions Send Oil Prices Soaring Amid Global Supply Risks

The Middle East remains a significant source of uncertainty for global energy markets as tensions surrounding Iran and the Strait of Hormuz escalate.

Oil prices are rising in response, with Brent crude approaching $90 per barrel. The waterway is critical to international trade, handling roughly 20% of global oil flows. Even partial disruption can have severe consequences, increasing insurance premiums, freight costs, and transportation delays that effectively raise the cost of supplying markets.

The recent attacks on commercial vessels and stalled U.S., Iran negotiations have intensified concerns about Middle East energy supplies. Li Xing Gan, Financial Markets Strategist at Exness, notes that ongoing tensions in the region have 'rattled global energy markets' with no clear signs of a ceasefire.