Rising Middle East Tensions Spark Oil Supply Fears
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Oil markets are on edge due to expanding conflict in the Middle East, including attacks by Houthi rebels on ships in the Red Sea and tit-for-tat strikes between Iran and other countries.
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The US and allies have formed a naval coalition to counter Houthi threats, but tensions remain high as Iran vows retaliation.
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Shipping routes like the Suez Canal and Strait of Hormuz are being disrupted, causing oil tankers to take longer, more expensive routes.
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So far global oil supplies have not been significantly impacted, but prices could spike if conflict escalates further or hits output.
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Israel's attacks on Gaza and potential retaliation from Iran are wildcards that could shock oil markets if crude production is disrupted.