Oil Prices Surge Past $80 Amid Geopolitical Tensions in the Strait of Hormuz

Brent crude oil breached the $80 per barrel mark as geopolitical tensions escalated following a US-Israel joint strike on Iran, which resulted in the death of Supreme Leader Ayatollah Ali Khamenei. The conflict has triggered fears of a supply disruption, with Iran threatening to close the Strait of Hormuz—a critical chokepoint for global oil trade.

West Texas Intermediate (WTI) also saw a significant uptick, trading NEAR $73. The potential closure of the strait, which handles 20% of the world's seaborne oil, has already halted tanker traffic, prompting Saudi Aramco and Qatar to suspend operations at key energy facilities.

Analysts warn of further volatility. JPMorgan estimates Persian Gulf producers may need to cut output within 25 days if the strait remains closed, while OCBC Bank projects Brent could spike above $100 in an extreme scenario. The US has pledged measures to mitigate rising energy costs, but markets remain on edge.