Oil climbs above $80 as Iran strikes escalate Hormuz tensions

Oil prices jumped to the high $70s/over $80 a barrel after Iran attacked multiple tankers near the strait of Hormuz, signaling a breakdown of the ceasefire and stoking supply fears. The disruption coincided with jumpy financial markets: UK gilts rose as traders priced in BoE rate hikes, and the FTSE 100 fell about 1.7% while BP and Shell outperformed. European gas and UK energy prices also firmed on the renewed tensions. Analysts warned that tanker traffic through Hormuz has effectively stalled, though some supply relief came from alternative routes and waivers, revising the global loss from an initial 20m barrels per day down to about 3.1m. The situation keeps household energy and pump prices at risk ahead of winter, with markets awaiting how the US-Iran standoff will resolve following Iran’s broader hardening stance and the upcoming burial of Iran’s supreme leader.