Middle East conflict: What disruption in the Strait of Hormuz means for markets

Oil markets have reacted to the latest escalation in the Middle East, with prices briefly surging to above $118 per barrel before easing somewhat. The catalyst is the effective closure of the Strait of Hormuz, which sees approximately 20 million barrels of oil go through it each day. When supply is disrupted on this scale, inventories begin to fall and prices rise rapidly. Some producers are rerouting flows where possible, but this only partly reduces disruption. Read more about the wider and long-term impact of the closure, the lessons investors can take from it, and the importance of energy...