Gulf states including the UAE and Kuwait have cut oil production by 500,000 barrels daily, joining Iraq, as the war in Iran keeps the Strait of Hormuz closed to tankers. This closure, now in its ninth day, blocks a vital route handling a fifth of global oil. Brent crude surged 30% last week, nearing the $100 threshold, while Abu Dhabi's Murban crude hit $103 and Oman crude reached $107. Analysts warn prices have no short-term ceiling.

Iran's attacks, including drone strikes on Saudi Arabia's Shaybah field, continue despite US threats to widen targets. The US announced a $20 billion maritime reinsurance plan but acknowledged the major concern is vessel safety, requiring full naval escort. Shipowners hesitate without protection, fearing attacks could outlast current disruptions.

Asia, reliant on Gulf oil, feels immediate pain: Japan is considering tapping reserves, China curbed fuel exports, and South Korea may reinstate an oil price cap. In Europe, jet fuel prices hit a record $1,528 per ton. ING analysts predict four weeks of disruption at current levels, warning prices could spike to records if flows don't normalize soon.