Oil Shock Risk Looms as Iran Conflict Threatens Hormuz Corridor
The US-Israel–Iran war raises the risk of a global energy shortage if the Strait of Hormuz remains closed, potentially pushing oil prices toward $100–$150 a barrel and forcing higher inflation and borrowing costs as central banks respond. While markets currently price a short disruption, the duration of the conflict and damage to energy assets will determine the hit to growth, with Asia and Europe likely to be hardest hit if supplies stay constrained and LNG prices climb amid tight stocks.
