Attack on Iran could affect the global oil market and economy

A joint U.S. and Israeli attack on Iran has raised concerns about disruptions to shipments through the Strait of Hormuz, and oil prices rose after the news.

A joint U.S. and Israeli attack on Iran has prompted concern about possible disruptions to oil flows from the Gulf. Iran is an OPEC producer and borders the Strait of Hormuz, a key route for global seaborne crude. Markets reacted with higher crude prices and some reports of tankers diverting from the strait. Analysts warn that prolonged disruption could have broader economic effects. Key developments: - The attack on Iran was reported by officials and prompted a market reaction with higher oil prices. - State media reported Iran launched missile strikes on U.S. bases in Qatar, Kuwait, the UAE and Bahrain. - About 14 million barrels per day passed through the Strait of Hormuz in 2025, and some tankers have been observed diverting from the route. - Analysts said a prolonged closure of the strait could strain spare capacity and that the U.S. Strategic Petroleum Reserve holds about 415 million barrels. Summary: Analysts say disruptions to flows through the Strait of Hormuz have pushed oil prices higher and could limit spare capacity’s ability to reach markets. Undetermined at this time.