Brent crude oil prices have surged to $125 per barrel, the highest level since March 2022, due to renewed conflict in West Asia and disruptions in the Strait of Hormuz, a vital chokepoint for global oil supply. Naval tensions and blockades by Iran and the United States have restricted tanker movement, stranding thousands of vessels and disrupting nearly one-fifth of global oil trade. Despite conditional reopenings of the strait, shipping companies remain hesitant to resume operations due to risks of attacks and high insurance premiums. The ongoing ceasefire talks among regional powers have yielded only fragile progress, leaving oil markets vulnerable to geopolitical uncertainties. Additionally, the United Arab Emirates' recent exit from the Organization of the Petroleum Exporting Countries (OPEC) weakens collective action, adding to market instability. Countries like India and China, heavily reliant on oil imports, are diversifying their energy sources to shield their economies from high prices. The International Monetary Fund (IMF) warns that sustained prices above $120 could exacerbate inflationary pressures worldwide, particularly affecting Europe and Asia, and potentially lead to recession risks. Without a durable ceasefire, volatility in oil prices is likely to persist.