Wall Street is preparing for a potential surge in oil prices after United States and Israeli strikes on Iran heightened fears of disruption in the Strait of Hormuz, a critical route that carries about one fifth of the world’s oil and gas. Brent crude has already climbed sharply this year and could approach or exceed 100 dollars a barrel if shipping through the narrow waterway is significantly disrupted.

Even without a full closure, missile threats, higher insurance costs and diverted tankers could slow traffic enough to drive prices higher. Nearly 20 million barrels of oil pass through the strait each day, and there are limited alternative routes for much of that supply. Any sustained interruption would likely ripple quickly through global energy markets.

Higher oil prices would raise costs for gasoline, groceries, flights and manufactured goods across the United States, while also pushing up inflation. Analysts warn that a prolonged rise to around 100 dollars a barrel could lift inflation noticeably and delay or reverse planned interest rate cuts by the Federal Reserve, while also slowing economic growth. Although some major producers are increasing output and certain countries hold stockpiles, markets remain focused on whether shipping through the strait continues without major disruption.