Oil Price Volatility Sparks Market Anxiety as Iran Threatens Retaliation

Oil markets brace for turbulence as Iran's foreign minister declares all options remain open to defend sovereignty. US WTI crude surged 2% to $75.22/barrel in Asian trading, with Brent crude climbing similarly to $78.53. The specter of Hormuz Strait closure—a chokepoint for 20% of global supply—looms large after Tehran lawmakers approved such measures.

Analysts warn of unprecedented risks to global energy markets. "This time feels different," notes Lipow Oil Associates' Andy Lipow, citing sustained missile attacks and direct US involvement. MST Marquee's Saul Kavonic suggests even limited harassment of tankers could propel prices toward $100/barrel, while prolonged closure WOULD likely trigger Western military response.

The Rapidan Energy Group echoes concerns that Iranian retaliation could create sustained supply disruptions. Market participants now weigh geopolitical escalation against fragile economic conditions, with energy volatility threatening to spill over into broader financial markets.