Following joint US-Israeli military strikes on Iran, resulting in the death of Ayatollah Ali Khamenei and Iranian retaliation, global energy markets are experiencing significant turmoil. Crude oil prices surged over 7%, with Brent reaching $82.37 a barrel and WTI climbing to $71.86, driven by Iran's closure of the Strait of Hormuz – a critical oil chokepoint handling approximately 20 million barrels of oil daily. Shipping has been paralyzed, with over 150 freight ships stalled and major companies like Maersk suspending crossings. Analysts warn oil could exceed $100 a barrel if transit flows aren't quickly restored, with some predicting prices could reach $125, mirroring the Russia-Ukraine conflict. Three U.S. service members have been killed in the conflict, labeled “Operation Epic Fury.” OPEC+ agreed to a modest quota increase, but it’s unlikely to offset potential supply disruptions. Gold also saw gains as investors sought safe-haven assets. While some initial price spikes have been partially reversed, volatility remains high, and the situation is highly sensitive to further developments.
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