Oil prices swung sharply throughout the past week as traders reacted to the escalating conflict with Iran, briefly surging to around $120 per barrel before retreating and then climbing again as concerns about shipping through the Strait of Hormuz continued to toss global energy markets. 

The volatility reflects fears that fighting in the Middle East could disrupt oil shipments through the strategic waterway between Iran and Oman. Roughly one-fifth of the world’s oil supply passes through the Strait of Hormuz, making it one of the most important chokepoints in the global energy supply chain.