Oil prices jumped sharply on Monday, and equities fell across major markets as the military conflict between the United States, Israel, and Iran showed no sign of abating, raising the prospect of a prolonged supply shock that could reignite inflation and weigh on a fragile global economic recovery.
Brent crude climbed 6.4 per cent to $77.57 a barrel, briefly breaching $82.00, whilst US crude rose 6.2 per cent to $71.17. Gold, the traditional refuge in times of geopolitical stress, gained 1.6 per cent to $5,360 an ounce.
The immediate focus of market anxiety is the Strait of Hormuz, through which roughly a fifth of the world’s seaborne oil trade and a fifth of its liquefied natural gas passes. The waterway has not yet been formally blocked. Still, marine tracking data showed tankers accumulating on either side of the strait, with operators reluctant to risk attack or unable to secure insurance for the voyage.
