Oil prices jump as Strait of Hormuz disruption shakes markets

Global crude markets opened the week under stress after a sharp rise in oil prices tied to the escalating conflict involving Iran and the United States and Israel. Reuters reported that crude futures jumped more than 8% in the first trading session after the weekend strikes, and that analysts expect prices to stay elevated for days as traders focus on energy flows through the Strait of Hormuz. Al Jazeera reported Brent crude traded around $79.41 a barrel early Monday, up about 9% from Friday, as investors weighed the risk that supply from Iran and the wider Gulf could slow amid higher security and insurance costs for vessels transiting the region. Why the Strait of Hormuz matters to the global economy Energy markets treat the Strait of Hormuz as a systemic risk point because it channels a large share of global seaborne oil trade and consumption. The U.S. Energy Information Administration (EIA) estimates that flows through Hormuz in 2024 and early 2025 made up more than one-quarter of global seaborne oil trade and about one-fifth of global oil and petroleum product consumption. Even a partial slowdown can tighten supply in physical markets quickly. Al Jazeera reported marine tracking showed vessels piling up on either side of the strait, reflecting caution over attack risk and difficulty securing coverage for voyages. What shipping disruption looks like in practice Energy shocks rarely start at the refinery gate. They often begin at sea, when shipowners pause sailings and insurers raise premiums. Reuters reported that attacks damaged tankers and that ship owners, oil majors, and trading houses suspended crude oil, fuel, and LNG shipments via the Strait of Hormuz. That disruption can ripple through freight markets, delivery schedules, and the cost base for airlines, manufacturers, and import-dependent economies. Sky News also pointed to the lagged pass-through into retail fuel prices, citing the RAC estimate that pump-price increases typically appear about two weeks a