Global oil prices are rising sharply as the escalating conflict between the United States, Israel and Iran raises fears of a prolonged disruption to shipping in the Strait of Hormuz. A blockage of this strategic route, through which about a fifth of global oil supplies pass, could lead to significant price increases for consumers and businesses around the world.
The tensions have pushed oil prices towards $120 a barrel for the first time since 2022, causing major volatility in financial markets. In South Korea, the main KOSPI stock index activated a “circuit breaker” mechanism after a drop of more than 8%, forcing a trading halt for 20 minutes.
The biggest pressure was felt by the country's tech giants. Samsung Electronics shares fell more than 10%, while SK Hynix's plunged 12.3%.
Energy markets reacted as several Middle Eastern countries cut production and heightened risks to shipping in the Strait of Hormuz. Brent crude futures rose 26.1% to $116.08 a barrel, while U.S. WTI crude futures rose 27.6% to $116.03 a barrel — the biggest one-day gain since late 1988.
Analysts warn that if tensions continue and oil flows through the strait do not resume, prices could quickly cross the $120–130 per barrel mark.
Experts warn that even if the conflict ends quickly, consumers and businesses could face weeks or months of high fuel prices. D
