Oil prices have surged as the war between the United States, Israel, and Iran intensifies across the Middle East.
Brent crude and West Texas Intermediate (WTI) crude have both climbed above the US$100 per barrel mark for the first time since 2022, triggering a strong rally across global energy markets.
The move reflects growing fears that the escalating conflict could disrupt oil supplies across one of the world's most important energy-producing regions.
Here is what is driving the move.
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Oil prices surge as conflict threatens global supply
Global oil markets have reacted strongly as the conflict in the Middle East enters its 10th day.
According to Trading Economics, WTI crude oil has jumped about 19% to roughly US$108 per barrel, while Brent crude is up around 17% to US$108 per barrel.
The rise comes as escalating military strikes between Israel and Iran raise concerns about disruptions to oil supplies across the region.
One of the biggest risks to global energy markets is the Strait of Hormuz, a narrow shipping route between Iran and Oman.
Around 20% of the world's oil supply normally passes through this strategic waterway.
Recent reports suggest tanker traffic through the strait has slowed dramatically amid rising security threats and attacks on shipping vessels.
Some Middle Eastern producers have already begun cutting output or halting shipments, which is tightening supply in global energy markets.
With supply risks rising quickly, oil traders have pushed prices significantly higher.
The OOO share price is rocketing
The sharp move in oil prices is flowing through to the Betashares Crude Oil Index Currency Hedged ETF (ASX: OOO).
The ETF aims to track the performance of the S&P GSCI Crude Oil Index, which reflects movements in global oil prices.
Because the fund is currency hedged, it is designed to track the underlying oil price without the impact of fluctuations in the Australian dollar.
As oil prices have surged in recent days, the ETF has followed.
Over the past week alone, the OOO share price has surged more than 60%, rising to its latest price of $9.50.
Year to date, the ETF is now up close to 85%, reflecting the powerful rally in crude markets.
Trading volumes have also jumped as investors seek quick exposure to rising energy prices.
What happens next for oil prices
Where oil prices go next will largely depend on how the conflict develops.
Analysts say the biggest concern remains the potential for a long-term disruption to energy shipments through the Persian Gulf.
If the Strait of Hormuz remains restricted or damaged, infrastructure reduces production across the region, and global supply could tighten further.
Some analysts have warned that oil could climb well above US$120 per barrel if the conflict escalates and supply disruptions worsen.
Right now, however, energy markets remain extremely sensitive to developments in the Middle East.
And that means the OOO share price could remain volatile as investors react to new updates from the conflict.
