In the wake of the war on Iran. Oil price makes biggest jump in 4 years

 Oil prices have posted their biggest jump in four years, with tanker traffic through the Strait of Hormuz almost completely shut down and a major refinery shut down in Saudi Arabia as escalating conflict in the Middle East threatens supplies in one of the world's largest crude-producing regions.

U.S. media reported that Brent crude futures prices rose by about 10% to close to $80 a barrel, while diesel futures, which are the engine of the global economy, rose by more than a fifth.

At least four ships were attacked on Sunday, with a temporary pause imposed on themselves by shipowners and merchants as the conflict widened.

The sources said that the first significant repercussions on the oil assets, Saudi Aramco stopped work at the Ras Tanura refinery after a drone attack on the area, according to people familiar with the matter, which further exacerbated the rise in fuel prices. However, oil flows from a nearby port continued.

While Iranian authorities said today that the main waterway is still open, they noted

It  also attacked  three oil tankers. President Donald Trump said U.S. forces had destroyed and sunk nine Iranian naval vessels, and that combat operations would continue until all objectives were achieved.

In response to the widening conflict, the OPEC alliance agreed at a pre-planned meeting over the weekend to increase supply quotas next month by 206,000 barrels per day. The coalition, which includes Iran, Saudi Arabia and Russia, was expected to resume slight increases before hostilities erupted on Saturday.

Crude oil has risen this year, achieving successive monthly increases, due to ongoing geopolitical tensions and a series of domestic supply disruptions. The gains came despite expectations that the oil market is facing a large surplus, following supply increases from OPEC+, as well as from countries outside the alliance.

According to economic analysts, if  energy costs continue to rise, it threatens to increase inflationary pressures around the world. This could complicate the task of central banks, including the US Federal Reserve, to manage the pace of rising prices while supporting growth and employment.