Why Oil Prices Spike (and What It Means for Your Portfolio)

If you have been watching gas prices climb over the past few weeks, you are not alone. Conflict in the Middle East has disrupted shipping through the Strait of Hormuz, a narrow waterway between Iran and Oman that carries roughly one-fifth of the world's oil supply. That disruption is filtering through to prices at the pump, grocery store shelves, and investment portfolios. Understanding why oil prices react so sharply to these events, and how this situation differs from tariffs or sanctions, can help you make sense of what you are seeing in the headlines.