Oil prices jump and shares fall as conflict escalates

Oil prices have surged as Iran continues its attacks in the Middle East in retaliation to US and Israeli actions. On Monday, Brent crude, which sets global oil prices, rose by 10%, reaching over $82 per barrel after three ships were reportedly attacked near the Strait of Hormuz over the weekend. Natural gas prices also increased, climbing as much as 25%. Iran has warned ships against passing through this vital waterway, which is essential for transporting about 20% of the world’s oil and gas. In London, the FTSE 100 index opened nearly 1% lower, with airline stocks dropping after airspace was shut down across the Middle East. Other major European stock markets saw even larger declines, with France's CAC-40 falling by 1.6% and Germany's Dax dropping by 1.7%. Additionally, gold, often seen as a safe investment during uncertain times, increased by 2.3% to $5,395.99 an ounce. Shipping traffic has nearly stopped at the entrance of the Strait of Hormuz, and experts warn that a long-lasting conflict could drive energy prices even higher. The UK Maritime Trade Operations Centre (UKMTO) reported that two ships were hit, and an “unknown projectile” exploded very close to a third vessel. After its initial rise, Brent crude later dipped to $79 per barrel, while US oil prices increased by about 7.6%, reaching $72.20.