Oil and Gas Prices Spike as Iran Warns Over Strait of Hormuz

Kuala Lumpur, El Sky News Global energy markets remained under pressure on Tuesday as oil and gas prices climbed sharply amid escalating tensions between Iran, the United States, and Israel.

Brent crude rose 3.2% to reach $80 per barrel, extending gains recorded earlier in the week. Meanwhile, natural gas prices surged by 30%, with UK wholesale gas climbing to approximately 140p per therm. The rally follows strong increases on Monday, when markets first reacted to US-Israel strikes on Iran over the weekend and Tehran’s subsequent retaliation.

Strait of Hormuz Threat Raises Alarm

Tensions intensified after Ebrahim Jabbari, an adviser to the commander-in-chief of the Islamic Revolutionary Guard Corps (IRGC), issued a stark warning regarding the Strait of Hormuz. Speaking on state television, he warned that any vessels attempting to pass through the strategic waterway would face a “serious response,” declaring Iran would “set fire to anyone who tries to pass through.”

The Strait of Hormuz is a vital artery for global trade, with roughly 20% of the world’s oil and gas supply flowing through the narrow passage. However, shipping traffic has reportedly slowed dramatically in recent days following attacks on multiple vessels, raising fears of broader disruption to energy supplies.

Global Markets React

The mounting geopolitical risks triggered declines across major stock markets in Europe and Asia as investors assessed potential consequences for inflation and monetary policy.

In the UK, the FTSE 100 fell 1.4% at the open, while Germany’s DAX dropped 1.7%. Analysts say sustained increases in energy prices could add renewed pressure on household bills and complicate efforts by central banks to control inflation.

Shipping Costs Hit Record High

The conflict has also sent oil transportation costs soaring. According to data from the London Stock Exchange Group, the cost of hiring a supertanker to transport crude from the Middle East to China surged to a record high of over $400,000 (£298,300) per voyage on Monday—nearly double the rate recorded just a week earlier.

Gas markets were further rattled after QatarEnergy, one of the world’s largest gas exporters, suspended production following reported military attacks on its facilities.

With tensions showing little sign of easing, traders and policymakers alike are bracing for continued volatility in global energy and financial markets.