MenuThe U.S.–Israeli strikes on Iran that began on February 28th quickly escalated tensions across the Persian Gulf, prompting a range of Iranian attacks against energy infrastructure throughout the region and the closure of the Strait of Hormuz. The Strait, a narrow water passage bordered on the north by Iran through which ships can transit from the Persian Gulf to the Gulf of Oman and the open Arabian Sea/Indian Ocean, accounts for 20% of daily global oil and liquefied natural gas flows. Predictably, global markets reacted immediately. Major equity indexes tumbled on Monday, while gas prices soared. By Thursday, Brent crude approached$84 a barrel, its highest level since July 2024, while West Texas Intermediate climbed roughly 8%, nearing $77 per barrel. Historically speaking, these are manageable increases.
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