Oil prices have surged past $120 per barrel as escalating tensions in the Middle East threaten critical supply routes. The spike comes amid concerns that the conflict could spread to involve Iran and disrupt tanker traffic through the Strait of Hormuz, through which 20% of global oil supplies flow.

Energy analysts warn that prices could climb higher if the situation deteriorates further. OPEC has indicated it would increase production if necessary, but spare capacity is limited after years of underinvestment in new supply.

The price surge is already affecting consumers, with gasoline prices at the pump climbing toward $5 per gallon in many U.S. markets.