On May 1, 2023, crude oil prices surged due to escalating tensions between the United States and Iran, particularly as Iran continues to block the Strait of Hormuz. Brent crude futures for July increased by $1.19, or 1.08%, reaching $111.59 per barrel, while West Texas Intermediate futures rose by 39 cents, or 0.37%, to $105.46. The ongoing conflict has led to a significant disruption of approximately 20% of the global oil supply since late February, when US and Israeli military actions against Iran commenced. In March, Brent crude prices soared by 50%, and the June contract had previously peaked at $126.41, the highest since March 2022. Despite a ceasefire in effect since April 8, Iranian officials indicated that quick resolutions to negotiations with the US are unlikely. Investors are now monitoring developments closely, as central banks in Britain and Europe express concerns over rising inflation due to these price hikes. The US is also working to form a coalition to ensure safe passage through the Strait of Hormuz while maintaining its blockade of vessels servicing Iran.