Iran Threats Drive Oil Past $100, Markets Fall

This escalation, coupled with increased attacks on ships in the Gulf, has severely spooked energy traders. The International Energy Agency (IEA) has warned that the ongoing war in the Middle East is causing the largest oil supply disruption in history.

Despite a historic release of 400 million barrels from emergency reserves by 32 major economies, the near-blockade of the Strait of Hormuz, which typically handles 15 million barrels of crude and 5 million barrels of other oil products daily, has rendered these efforts largely ineffective. Analysts at Capital Economics suggest sustained oil prices in the $90-100 range risk fueling inflation and slowing global economic growth.

Investor sentiment remains negative, with stock markets across Asia, Europe, and the United States trading overwhelmingly in the red as the market increasingly prices in a protracted conflict and extensive economic damage.