**BREAKING NEWS**
Shell has reported profits doubled from the previous period as oil prices surge amid escalating conflict with Iran. The energy giant’s earnings spike comes as disruptions to crucial supply routes through the Strait of Hormuz are driving sharp increases in both crude oil and liquefied natural gas prices globally.
The Strait of Hormuz, a critical chokepoint handling roughly one-fifth of global oil supply, has seen significant supply chain disruption as Iran war tensions intensify. This has created immediate upward pressure on energy commodities, directly benefiting major producers like Shell while raising concerns about sustained inflation and energy security across global markets.
Traders are closely monitoring the situation as continued instability in the region could push prices even higher in coming sessions. Energy sector equities are seeing heightened volatility as markets price in geopolitical risk premiums.
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FXnCO Insight
** Energy traders should prepare for continued volatility with tight stop-losses, while portfolio managers may want to hedge inflation exposure through energy sector positions or commodity futures as Strait of Hormuz disruptions show no signs of immediate resolution.
Source: BBC Business