A key factor behind the oil price surge is the situation in the Strait of Hormuz, a narrow waterway located between Iran and Oman.
This strait is extremely important for the global energy supply. Around one-fifth of the world’s oil passes through this route, along with a large share of natural gas exports.
However, shipping traffic through the strait has been effectively halted because of fears that vessels could be attacked during the ongoing conflict.
On Tuesday, the US military reported attacking 16 Iranian vessels that were allegedly laying sea mines near the strait. These mines could threaten commercial ships passing through the region.
Officials from the Trump administration have also suggested the possibility of naval escorts for commercial vessels to help protect shipping routes.