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Israel-Iran conflict shakes oil markets and global supply chains

Oil price news

Rising tensions between Israel and Iran, marked by military strikes and retaliations, have disrupted global trade and sent oil prices surging.

Flights to Tel Aviv and Tehran are suspended, and shipping firms are on high alert over fears the vital Strait of Hormuz—a route for 20% of global oil—could be targeted. Oil futures spiked over 13%, and Brent crude rose 5% as markets reacted.

U.S. officials and analysts warn that any closure of the strait or attack on Iraqi oil infrastructure could trigger the largest oil shock in history, reversing inflation gains and destabilising energy markets.

While the route remains open, countries are urging caution, and the International Energy Agency has hinted at releasing emergency reserves, a move criticised by OPEC.

Image credit: Getty Images

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