Oil prices surge as conflict in Iran disrupts shipping through key Strait

Oil prices jumped to a seven-month high after a military conflict involving Iran disrupted shipping through the Strait of Hormuz. The strait is a critical passage for about a fifth of the world's seaborne oil, and the fighting raised immediate concerns about supply disruptions.

One incident involved an oil tanker with 15 Indian crew members being hit, leaving four injured. The broader conflict has fueled a rise in oil and gas prices and increased demand for safe-haven assets like the US dollar, as markets reopened to the news.

The situation puts global oil markets in a precarious position, testing their vulnerability to supply shocks from the region. Analysts describe the market's worst fears about a Gulf conflict impacting the Strait of Hormuz as being realized, though some suggest the price impact, while significant, may not be a complete shock to the system.