unts for nearly a third of the world’s oil production and any instability in the region can quickly ripple through global energy markets. Traders said fears of supply disruptions have prompted increased buying activity, pushing prices to their highest levels in months. Energy infrastructure and shipping lanes are under heightened scrutiny as tensions escalate. The Strait of Hormuz, a narrow maritime passage between the Persian Gulf and the Gulf of Oman remains one of the most strategically important oil transit chokepoints in the world. Roughly a fifth of global oil consumption passes through the corridor each day. Markets are pricing in geopolitical risk premiums , said one energy market analyst at a European commodities research firm. Even the perception of supply risk in the Gulf region can move prices quickly. The surge in oil prices is already affecting broader financial markets. Energy stocks rose in several major exchanges, while airline and transport shares came under pressure due to expectations of higher fuel costs. Governments and central banks are also closely monitoring the situation as rising oil prices could add new inflationary pressure to the global economy. Higher energy costs often translate into increased transportation and production expenses, which can eventually push up consumer prices. Major oil-producing countries have not yet announced any changes to output levels. However, market participants say producers could face increasing pressure to stabilize supply if prices continue to climb. In recent months, global oil markets had been relatively stable as demand growth slowed in several major economies. The sudden geopolitical shock, however, has shifted investor sentiment and introduced fresh volatility into the market. If tensions continue to escalate, analysts warn that crude prices could breach the $100 threshold, a level not seen consistently since the energy market disruptions earlier in the decade. For now, traders remain focused on developments in the region with energy markets expected to remain highly sensitive to any signals of further escalation or disruption to oil infrastructure and shipping routes. Source: AP News