Global oil prices climbed by more than 3% after the US and Iran exchanged heavy military strikes, fueling fears of a wider regional conflict and disrupting shipping through the strategically vital Strait of Hormuz.

The price of Brent crude rose to around $76 per barrel (£56.88), reflecting growing concerns over the security of global energy supplies as tensions escalated. The increase came after shipping traffic through the Strait of Hormuz slowed significantly amid fears of further attacks.

The Strait of Hormuz, through which roughly 20% of the world’s seaborne oil supply passes, is one of the most critical maritime trade routes for global energy markets. Any disruption to shipping in the waterway is closely monitored by investors and energy traders due to its potential impact on fuel supplies and prices worldwide.

The latest escalation has heightened concerns over the stability of the Middle East, with governments and international organizations calling on both Washington and Tehran to exercise restraint and prevent the conflict from expanding further.

Analysts warn that prolonged hostilities or a sustained disruption to oil shipments through the Strait of Hormuz could trigger further increases in global energy prices, adding pressure to inflation and economic growth in countries heavily dependent on imported fuel.