Oil prices spike as US-Iran conflict escalates

This escalation directly threatens a key chokepoint for global crude flows, which is why the market is repricing supply risk so sharply. The move above $89 WTI suggests traders are now weighing the possibility of actual supply disruption, not just geopolitical noise. The critical question is whether this is a short-lived panic or the start of a sustained risk premium, which will depend on whether the conflict widens to affect neighboring producers or shipping lanes. For energy-dependent economies and central banks already fighting inflation, this adds a fresh layer of uncertainty to the macro outlook.