WTI crude oil prices have jumped over 3% due to a significant escalation in geopolitical tensions in the Middle East. The U.S. military reportedly struck five Iranian oil tankers in response to Iranian missile attacks on a U.S. warship. This direct conflict, coupled with recent Houthi attacks on Saudi energy facilities, has heightened market fears of a wider conflict that could disrupt crude supply through the critical Strait of Hormuz, leading to a significant geopolitical risk premium being priced into oil.