The ongoing Iran war has put Middle East energy assets at risk, according to Karen E. Young, Senior Research Scholar at Columbia University's Center on Global Energy Policy. Young warned that while current oil price movements suggest traders expect a short conflict, a prolonged war could trigger major market disruptions.

Limited price surges so far indicate markets are betting on a quick resolution, but Young cautioned that extended fighting threatens to cause chaos across global energy markets. Tehran has escalated tensions by threatening to close the Strait of Hormuz, through which roughly 20% of global oil passes daily, and has conducted strikes on various US Embassies.

The regional instability comes as traders watch for signs of how long the conflict might last. Young's analysis suggests that prolonged disruption would likely push gas prices higher worldwide, with the Strait of Hormuz closure threat adding particular concern for energy markets already facing uncertainty.