Oil shock rocks markets

The Strait's closure, triggered by escalating conflict, has brought tanker traffic to a virtual standstill. Insurance costs have skyrocketed, and some insurers are cancelling coverage altogether. Saudi Aramco's CEO warns of "catastrophic consequences" for global oil markets if the Strait remains closed. He calls this "the biggest crisis the region's oil and gas industry has faced". Alternative routes exist, like Saudi Arabia's East-West Pipeline to Yanbu, but capacity is limited. The UAE also operates a pipeline to Fujairah, but storage facilities there have been attacked. Economists fear prolonged high oil prices could reignite inflation and strain household budgets. Some analysts predict oil could spike to $180-$200/barrel if the disruption continues. President Trump has suggested the US Navy could escort tankers. He also stated the U.S. International Development Finance Corporation would provide insurance to ships passing through the Persian Gulf.