U.S.-Iran Conflict: Energy Markets Volatile and Proxy Actions Surge

Global energy markets are experiencing high volatility as the standoff in the Strait of Hormuz continues. Brent crude surged to $112 per barrel before settling near $108, while the IEA warned of potential global energy rationing through 2026. In the United States, gasoline prices have reached a national average of $5.67 per gallon, with economists warning of further inflationary pressure if shipping lanes remain restricted. Simultaneously, cyber warfare has escalated, with the pro-Iranian group "Predatory Sparrow" targeting U.S. fuel terminals and a sophisticated DDoS attack temporarily disabling Iranian IRGC command servers. Regionally, Gulf nations are bracing for further escalation. Saudi Arabia has deployed additional Patriot missile batteries following drone incursions near the Ras Tanura refinery, while the UAE, Qatar, and Bahrain have pledged $2 billion to a mutual defense fund. Human rights monitors report significant internal pressure within Iran, where fuel rationing has sparked the largest protests in coastal cities since the conflict began. While Oman and Turkey are attempting to mediate through back-channels and energy swap proposals, proxy violence has ticked up by 40% this week, including rocket fire against U.S. bases in Iraq and drone strikes against Iran-backed militias in Syria.