Middle East conflict drives oil price spike, shipping turmoil, and market stress

Escalating conflict involving Iran, the U.S., and Israel is disrupting Gulf shipping routes, including the vital Strait of Hormuz, driving up crude benchmarks like WTI and pushing gasoline prices sharply higher worldwide. War-risk insurance is being withdrawn for vessels in Iranian and Gulf waters, stranding cargo, and sending VLCC and tanker freight rates — plus Chinese and global shipping stocks — surging. The oil shock is lifting global energy costs, threatening the Fed’s rate-cut outlook, squeezing energy‑importing economies and European automakers, while benefiting some energy exporters and shipping companies with long-term contracted revenues. The turmoil exposes how fragile current supply chains are in an era of geopolitical tensions, with workers, consumers, and investors all facing heightened risk.