Oil prices surge 20%, nearing $110, while global stock markets plummet amid escalating war in the Middle East.
The strangulation of energy flow in the Persian Gulf and the rise of a new Supreme Leader linked to Iran's Revolutionary Guard have put the world on high alert for a new wave of global inflation.
Understand how "Operation Epic Fury" has impacted energy infrastructure and is causing markets to reopen in fear mode!
1- The Oil Explosion
The price of a barrel of oil forcefully surpassed the US$100 mark for the first time since 2022.
WTI crude hit US$108.83 (an impressive 20% jump), while Brent crude reached US$108.89 (a 17% increase).
Meanwhile, US futures indices fell almost 2%, while the VIX, the fear index, surged 11%!
2- The Reason: Operation Epic Fury
The military offensive by American forces in the region escalated dramatically, impacting the global energy infrastructure.
Iran's response was to ignite the global market.
Iranian forces attacked facilities in neighboring countries—including the giant Saudi Aramco in Ras Tanura (Saudi Arabia)—and used drones to target commercial and American-flagged oil tankers in the Gulf.
3- Retaliation and the Collapse in Supply
With the attacks on these commercial ships, the conflict strangled traffic in the Strait of Hormuz (through which 20% of the global flow passes).
Unable to transport oil by ship, Iraq was forced to drastically reduce its production from 4.3 million to just 1.3 million barrels per day.
Kuwait did the same.
4- The Hardline Succession in Iran
To worsen the diplomatic scenario, the market is digesting the official appointment of Mojtaba Khamenei (56 years old) as the new Supreme Leader of Iran.
He assumes the position after the death of his father in last Saturday's bombings, consolidating a radical stance that Trump had already described as "unacceptable".
The price of oil at $105 arrives tomorrow at market opening.
Those who make decisions based on outdated headlines end up paying dearly for volatility and seeing the fear of inflation erode profitability.