Tensions between Israel and Iran raise concerns about Iran potentially closing the Strait of Hormuz, a crucial oil transit point. Daily oil flow through the strait amounts to roughly 20 million barrels, impacting global markets, especially Asia. While a closure could cause oil prices to surge to $120-$130 per barrel initially, analysts believe this would be temporary. The US is expected to intervene militarily to keep the strait open, potentially supported by other nations. Iran's own oil exports and relationships with key trading partners would also suffer from such an action.

Prepared by Rachel Morgan and reviewed by editorial team.