Oil Prices Surge Above $95 as US‑Iran Clashes Disrupt Strait of Hormuz

Brent crude breached the $95‑per‑barrel mark and West Texas Intermediate rose above $85 as renewed U.S.–Iran hostilities halted tanker traffic through the Strait of Hormuz. The conflict, now in its second month, has also triggered Houthi rebels in Yemen to threaten to close the Bab el‑Mandeb Strait, prompting two Saudi tankers to turn back to port. Together, the Hormuz shutdown and the potential Red Sea blockage jeopardise roughly 7 % of global oil supply and have erased previously held strategic petroleum reserves and on‑water inventories.

Analysts note that the price surge threatens to push Brent toward the $100 threshold, reviving inflation concerns and pressuring equity markets. U.S. pre‑market equity futures fell as investors priced in higher energy costs and uncertainty over stalled diplomatic talks. The situation underscores the tight link between geopolitical tension in the Middle East and worldwide financial stability.