News: Iran Oil Supply Disruption Risk Surges as Operation
The US-Israeli military strikes on Iran under Operation Epic Fury have introduced the most significant risk to global oil supply chains since Russia's invasion of Ukraine in 2022. With Ayatollah Ali Khamenei confirmed killed, Iran retaliating with missile strikes across the region — hitting targets as far as Dubai and Abu Dhabi — and the Strait of Hormuz suddenly in question, energy markets face a potential supply shock that could ripple through the global economy. Crude oil prices had already been creeping higher in the weeks before the strikes, with WTI crude rising from $62.53 on February 17 to $66.36 by February 23 — a 6.1% increase driven largely by escalation fears. Brent crude followed a similar trajectory, climbing from $69.77 to $71.90 over the same period. With trading markets closed over the weekend as the strikes unfolded, the full impact on oil prices won't be visible until markets reopen. But energy stocks have already been flashing warning signals: ExxonMobil surged 2.7% to $152.60, Chevron gained 1.4% to $186.75, and Occidental Petroleum jumped 3.2% to $53.08 — all trading at or near their 52-week highs. The critical question for investors and consumers alike isn't whether Iran's 1.9 million barrels per day of exports will be disrupted — it's whether the Strait of Hormuz, through which 20% of the world's oil supply flows, remains open.