Iran attacks on Gulf oil and gas sites trigger energy fears

"Global stock markets have fallen and oil and gas prices have soared since Monday, the first day of trading after US and Israeli attacks on Iran on Saturday (February 28) and Iran's response by targeting major oil and gas infrastructure in the region. Brent crude rose about 7% on Tuesday to breach $80 (69) a barrel, having soared by as much as 13% at one stage on Monday."

"Much of the investor attention continues to be on the Strait of Hormuz, a key chokepoint accounting for around 20% of global oil supply and large quantities of gas. An official from Iran's Revolutionary Guards said the waterway is closed and that Iran "will set fire to any ship attempting to pass through the Strait.""

"Marine insurers are canceling war risk coverage for vessels in the Middle East Gulf, and oil shipping rates have been surging. Companies including Gard, Skuld, NorthStandard, the London P&I Club and the American Club said their cancellations would take effect from March 5. This means that shipping firms will have to find new insurance cover at higher rates."

Regional conflict between US, Israel, and Iran has triggered significant global market disruptions. Brent crude oil surged to $80 per barrel with intraday gains reaching 13%, while European gas prices jumped over 50% in a single day. The Strait of Hormuz, accounting for approximately 20% of global oil supply, faces potential closure threats from Iranian officials. Tanker traffic has effectively halted due to safety concerns and escalating insurance costs. Major marine insurers including Gard, Skuld, and the London P&I Club are canceling war risk coverage effective March 5, forcing shipping companies to secure new insurance at substantially higher rates. China, the world's largest oil and gas importer relying on the strait for half its oil imports, faces significant exposure to supply disruptions.

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