Oil prices oscillate as Iran conflict heightens Hormuz risks
Oil prices swung wildly as markets digested mixed signals about the US-Israel action on Iran and the unsettling prospects around the Strait of Hormuz. Brent briefly dropped below $80 before rebounding toward $90 after a now-deleted post about an escort claim, which Washington later denied; the strait remains effectively closed due to Iranian threats. Output cuts by Gulf producers and storage concerns add to supply tightness as the IEA reportedly weighs a large-scale reserve release, while the IMF notes that even a 10% rise in oil prices can lift inflation and slow growth. President Trump touts Navy options to keep Hormuz open, but analysts doubt feasibility amid drone and mine threats, keeping markets volatile and prices about 17% higher than pre-war levels.