Amid escalating tensions following the US bombing of Iran’s nuclear facilities, the oil price surged to a five-month high of $81.40 per barrel before retracting slightly to $78.32. Iran’s parliament’s threat to close the vital Strait of Hormuz, a key oil transport route, raised concerns about potential supply shocks and economic impacts. US Secretary of State Marco Rubio cautioned Iran against such actions, highlighting the economic risks involved. Chief economist Holger Schmieding emphasized the significance of monitoring the situation in the Strait of Hormuz, noting the potential for disruptions to energy flows in the Gulf region. Despite the geopolitical risks, markets remained relatively stable, with Asian stock markets exhibiting mixed reactions. Analysts warned of possible energy attacks in the Middle East and the need for vigilance in assessing the Iranian response. The IMF’s Kristalina Georgieva also warned of broader risks to global growth stemming from the US strikes on Iran, emphasizing the potential economic impact and uncertainty caused by the crisis. As investors sought safe-haven assets, the US dollar strengthened, reflecting market concerns about the situation. Overall, the evolving geopolitical landscape and energy market dynamics are closely watched for their potential implications on global economic stability.