US-Iran Conflict Escalates, Oil Surges

U.S. oil prices, including Brent Crude and West Texas Intermediate, soared after President Donald Trump announced that the United States would intensify attacks on Iran. This escalation follows Iran's effective shutdown of the Strait of Hormuz in retaliation for U.S.-Israeli strikes that began on February 28. The closure of the Strait of Hormuz, a critical waterway for global oil and liquefied natural gas shipments, has caused significant concerns about prolonged supply disruptions and has driven energy prices higher. While the United Kingdom is hosting talks to discuss reopening the Strait of Hormuz, the United States is not attending. Iran is reportedly drafting a protocol with Oman to monitor traffic in the strait. The economic outlook remains uncertain, with projections from Citigroup and JPMorgan Chase indicating potential further price increases if the Strait of Hormuz remains closed. Additionally, Ukraine's strikes on Russia's oil infrastructure have further reduced global supply capabilities.