Economic fallout from the weekend strike by U.S. forces on Iranian nuclear facilities has been muted so far, but the opening of direct hostilities between the U.S. and Iran could have far-reaching consequences for the global economy.

Shipping rates have spiked, oil prices are rising, and global stock markets have taken a hit.

All eyes are on the Strait of Hormuz, the narrow channel between the Arabian Peninsula and the Iranian mainland through which 20 million barrels of petroleum transit every day. That is the equivalent of 20 percent of the world’s daily petroleum consumption.

Iran’s Parliament approved a measure to close the Strait, according to a report from Iranian broadcaster Press TV, citing Iranian lawmaker Esmaeil Kowsari.

The channel lies entirely within the territorial waters of Iran and Oman, and attempts to close it could result in a dramatic escalation of the conflict.

Rising energy and shipping costs could translate to higher prices globally. Prices in the U.S. are already under pressure from President Trump’s trade war and are expected to rise this summer. Tariffs have yet to make a big impact on consumer prices overall.

Here’s a look at the economic dimension of the conflict so far.

Markets cautiously optimistic after Iranian restraint

U.S. stock markets rallied in early trading Monday as Iran had at that point confined its military response to missile attacks on Israel. Israel and Iran had been exchanging rocket volleys through last week after Israel took the unprecedented step of launching a direct attack on Iran on June 13 with Operation Rising Lion.

The Dow Jones Industrial Average of big U.S. stocks jumped 200 points, or about half a percent, while the S&P 500 index was up more than 32 points, or about 0.55 percent, in trading Monday morning.

The technology-heavy Nasdaq composite made a similar jump of 0.55 percent above an index level of 19,550.

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