Oil prices surge as Middle East conflict threatens key shipping lanes

Oil prices jumped nearly 5% to their highest level since January 2025. The sharp increase is due to a widening conflict in the Middle East, which is raising real concerns about disruptions to global oil supplies.

A major risk is the potential closure of the Strait of Hormuz, a crucial shipping lane for oil tankers. This threat is causing markets to react, with the dollar rising as a safe haven and shares tumbling on the prospect of higher energy costs and trade disruptions.