Oil crosses $100 for the first time since 2022 as Iran war keeps Strait of Hormuz closed, forces shut-ins

Oil prices breaching $100 for the first time since 2022 signifies a major escalation in geopolitical risk premium, primarily driven by the closure of the Strait of Hormuz due to the Iran war. This severe supply disruption, coupled with forced production shut-ins, will likely fuel inflationary pressures globally and could prompt central banks to re-evaluate their monetary policy stances. Investors should monitor geopolitical developments closely and consider energy sector exposure, while consumers face higher costs.