Middle East Airstrikes Boost Oil Prices by 7%: How Markets Will React?

Oil prices surged 7% as airstrikes resumed in the Middle East. Brent reached $90.25, while WTI hit $84.65. UBS analyst Giovanni Staunovo noted Iran's intent to control shipping through the Strait of Hormuz. The U.S. and Saudi Arabia struck Iran-backed groups in Iraq. U.S. EIA data showed crude inventories hit a 2018 low. Saudi Arabia increased shipments through Bab el-Mandeb, while Iran-backed Houthis demand fees in the Red Sea. China holds direct talks with the Houthis.

Iran's Role in the Strait of Hormuz

■Iran rejected Oman's regional management proposal.

■Iran fired at U.S. ships and Jordanian bases.

■Iranian officials confirmed plans to attack vessels.

Crude Oil Inventories and Consumption

■U.S. crude stocks fell by 7.2 million barrels.

■EIA reported the lowest level since 2018.

■Analysts expect stocks to remain low due to rising U.S. imports.

Alternative Routes and Logistics Risks

■Saudi Arabia increased shipments through Bab el-Mandeb.

■Houthis demand fees in the Red Sea.

■China holds direct talks with the Houthis.

Markets may signal a risk-on response. Rising oil prices will impact producers and consumers. Iran's control of the Strait of Hormuz could disrupt global supply chains.