Oil rises sharply amid war in the Middle East
Global oil prices jumped by about 10% to reach around 80 USD per barrel in over-the-counter trading. This is reported by the Reuters.
Why the market is nervous
The main reason for the jump was a sharp escalation in the Middle East and the threat of supply disruptions through the Strait of Hormuz, one of the world's key energy routes.
Traders are pricing in the risk of further escalation.
Analysts warn that if the fighting drags on or shipping in the Gulf is disrupted, the price of oil could quickly exceed $100 per barrel.
Context.
Markets traditionally react sharply to any risks to oil supplies from the Middle East.
The current escalation between Iran, the US and its allies has already begun to affect global energy markets.
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