Grace period for markets has ended as hopes of Middle East war staying controlled fade: Expert

• WTI and Brent crude prices are climbing significantly, indicating market expectations of a longer crisis.
• A potential 20 million barrels per day disruption (one-fifth of global supply) is being priced in, especially concerning the Strait of Hormuz.
• Key oil infrastructure like Iran's Kharg Island and shipping choke points such as Bab al-Mandab are highly vulnerable to attacks, posing risks to global oil and gas exports.
• CSIS warns of noticeably higher gasoline prices this week and emphasizes the critical need to restore Gulf oil and gas exports for global economic stability.

The market's 'grace period' for a contained Middle East conflict has ended, with experts now anticipating prolonged instability and significant oil supply disruptions. Rising oil prices reflect concerns over potential attacks on critical infrastructure and shipping choke points, which could lead to unprecedented global supply shortages and higher gasoline prices.