Multiple vessel attacks near the Strait of Hormuz, a narrow waterway that is only 33 km wide at its narrowest point and is responsible for transporting an estimated 17–20 million barrels of oil per day—roughly one-fifth of the world’s petroleum consumption—shook the world’s energy markets. At least two ships were hit and a third exploded close by in the incidents, which were reported by the UK Maritime Trade Operations (UKMTO). This sparked concerns about a potential disruption to the world’s energy supply.

Approximately 20% of the world’s liquefied natural gas (LNG) flows and 30% of the world’s seaborne oil trade pass through this corridor every day, according to data from the International Energy Agency (IEA). This route is crucial for major exporters like Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Qatar. Millions of barrels are taken out of international markets every day by even brief disruptions.

US West Texas Intermediate (WTI) increased to almost $70 per barrel in early Asian trading, while Brent crude futures increased by over 10% intraday, briefly surpassing the $80 per barrel barrier before easing to about $76 per barrel. This was one of the biggest one-session spikes in oil prices this year. According to analysts, prices could swiftly reach $90–$100 per barrel if flows through Hormuz were cut by just 3–5 million barrels per day.

Shipping has slowed considerably. More than 150 oil tankers were anchored outside the Gulf instead of risk transit, according to vessel-tracking data. In high-risk conflict areas, insurance rates for ships operating in the area have reportedly increased by as much as 300–500%. The cost of transportation has increased by millions of dollars per voyage due to the sharp increase in freight rates for Very Large Crude Carriers (VLCCs).

Although the producer alliance OPEC has declared a 206,000 barrels per day increase in........

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