Oil prices surge as US-Iran strikes intensify in Strait of Hormuz

# Why This Matters The escalation of US-Iran military activity in the Strait of Hormuz strikes at a critical chokepoint through which roughly 20-30 percent of global oil supplies flow daily. Even temporary disruptions to shipping in this narrow waterway translate immediately into supply shocks that ripple through economies worldwide—higher fuel costs at the pump, increased airline ticket prices, and elevated manufacturing expenses that manufacturers pass to consumers. For countries like Japan, South Korea, and India that depend heavily on Middle Eastern oil imports, sustained price spikes could trigger inflation pressures that force central banks to raise interest rates, potentially slowing economic growth. The six-week price surge signals markets are pricing in genuine risk of deeper disruption, and if the military posturing escalates into sustained attacks on tankers or port infrastructure, the global economy faces a sudden loss of purchasing power that could tip vulnerable sectors and developing nations into crisis.