Oil markets react to war

Investors are closely monitoring the escalating tensions between the U.S. and Iran, which have driven oil prices to their highest levels in months.

While Iraq has claimed its crude can still transit the Strait of Hormuz due to an Iranian exemption, market confidence remains low.

The prospect of U.S. strikes on Iranian power and oil infrastructure has added a significant risk premium to global trading.

Analysts warn that a prolonged closure of the waterway could lead to permanent shifts in global energy security.