Oil prices surged Sunday as U.S. and Israeli attacks on Iran, coupled with retaliatory strikes, disrupted the global energy supply chain. Traders anticipate a slowdown or halt in oil flow from Iran and the Middle East, with attacks on vessels in the Strait of Hormuz threatening crucial export routes. West Texas Intermediate crude rose 8% to approximately $72 a barrel.
The Strait of Hormuz, a vital chokepoint for roughly 20% of the world's oil shipments, faces increasing risk of disruption. Energy experts warn that reduced supply will inevitably lead to higher crude oil and gasoline prices. In response, eight OPEC+ nations announced plans to boost crude production by 206,000 barrels per day in April. Analysts note that constrained flows through the Gulf will limit the immediate impact of increased production, making access to export routes paramount.