Brent Crude Surges Past $110 as Strait of Hormuz Blockade Triggers European Energy Crisis

Global energy markets were thrown into turmoil after a military conflict in the Middle East led to the effective closure of the Strait of Hormuz, the world's most critical oil chokepoint. Brent crude prices surged past $110 per barrel, and European natural gas benchmarks spiked over 70%, stoking fears of renewed inflation and placing immense pressure on the European Central Bank. The blockade, a retaliation for joint U.S.-Israeli strikes in Iran, has halted roughly 20% of the world's oil supply and a quarter of its LNG trade. While heavy industry across Europe faces crippling costs, Spain has proven more resilient due to its significant renewable energy generation, which has insulated it from the worst of the fossil fuel price shocks. The crisis exposes Europe's continued vulnerability to geopolitical energy shocks, shifting the focus from Russian pipeline gas to maritime supply chain security.