Asia faces oil shock as US-Iran war chokes Strait of Hormuz

The US-Iran war has choked the Strait of Hormuz, sent oil prices up by the most in four years, and prompted tankers to flee the Gulf, the article reports.

“Oil has surged by the most in four years”

South China Morning Post

Traders swiftly priced in the war, freight costs climbed sharply alongside crude, and analysts warned the disruption could have far-reaching consequences for Asia’s heavily import-dependent economies.

South China Morning Post

The article says up to 10 million barrels a day may be stripped from global supply, and it does not specify who produced that estimate.

Benchmark Brent crude jumped 13 per cent to a high above US$80 a barrel before settling around US$76 as of Monday morning in Hong Kong.

West Texas Intermediate rose about 8 per cent to US$72 before easing to around US$67.

South China Morning Post

The article highlights both the sharp crude price moves and the concurrent rise in freight costs as markets reacted to the conflict.

Jorge Leon, senior vice-president and head of geopolitical analysis at Rystad Energy, said: "Iran has retaliated in a far more aggressive and expansive manner than in prior exchanges, targeting US military bases in the region and even conducting attacks on its key Gulf allies."

“Oil has surged by the most in four years”

South China Morning Post

The article attributes the market upheaval to those escalatory actions and frames the developments as a serious shock to supplies and to Asian importers; where estimates or attributions are unclear, the article does not provide further detail.