Oil prices spike amid Iran conflict
Brent crude surged from ~$70 to $110+ per barrel after the U.S.-Israel offensive against Iran, raising inflation and recession concerns.
The spike is driven by fears of supply disruptions in the Strait of Hormuz, a critical chokepoint for global oil shipments. Roughly 20% of the world's total oil supply passes through this waterway. Initial reports suggest the U.S. and Israel targeted Iranian nuclear and military sites. Iran has vowed retaliation, raising the specter of wider regional conflict. A sustained price increase could pressure the Federal Reserve to maintain higher interest rates. This complicates efforts to cool inflation without triggering a recession. Some analysts predict that oil could reach $150 per barrel if the conflict escalates further. This would have a cascading effect on transportation, manufacturing, and consumer prices.
