Oil prices surge amid geopolitical tensions in the Middle East. Brent crude rose to $113.32 per barrel as investors assess escalating threats over the Strait of Hormuz, a critical chokepoint handling roughly twenty percent of global oil supplies. President Trump's ultimatum demanding Iran reopen the strait has triggered volatile trading, with Iran countering by designating regional infrastructure as legitimate targets. Goldman Sachs significantly raised its oil forecasts, expecting Brent to average $110 in March and April, up from $98 previously. If Hormuz flows remain severely restricted through April, daily Brent prices could exceed the 2008 record of $147 per barrel. The International Energy Agency warns this escalation represents a worse energy shock than the 1970s oil crises, threatening global economic growth and inflation.
