Oil prices surge and swing wildly after Iran war blocks key shipping lane

A war in Iran has effectively blocked the Strait of Hormuz, a critical passage for global oil shipments. This has caused gasoline prices to jump in the US and France and triggered wild swings in the global oil market.

In response, a record 400 million barrels of oil are being released from strategic reserves by the International Energy Agency (IEA). However, this large release has so far failed to curb rising global oil prices, and a major commodity fund at Pimco slumped 17% in March due to the market turmoil.