APTOil prices surged to multi-year highs after the escalating conflict between the United States, Israel, and Iran disrupted oil production and shipping across the Middle East. Markets reacted sharply to threats around the Strait of Hormuz, the world’s most critical oil shipping route through which a large share of global energy supplies passes. Iran declared the strategic waterway closed, while tanker attacks, drone strikes, and refinery shutdowns across Gulf states have cut millions of barrels per day from global supply.
Major producers including Saudi Arabia, Iraq, Kuwait, and the UAE have reported production disruptions, while Qatar has halted parts of its LNG operations. The conflict has also triggered tanker insurance cancellations, reduced shipping traffic, and forced governments worldwide to take emergency measures to control fuel prices. Analysts warn that a prolonged war could spark a global economic shock similar to past oil crises.
