Investing.com - Iran's ability to disrupt oil flows appears constrained and could weaken further, according to analysts at Wolfe Research. The assessment comes amid escalating Middle East tensions, with Israel striking targets in Iran and Lebanon while Tehran launched counter-attacks across multiple countries.

Despite fears of supply disruption, Wolfe analysts argue that Iran's capacity to interfere with global oil shipments remains limited. The Strait of Hormuz, through which a fifth of global oil supplies flow, is particularly crucial. The analysts note that militarily closing this vital shipping artery would require anti-ship ballistic missiles, cruise missiles, and drones - capabilities that the U.S. is actively working to neutralize.

While the immediate threat appears contained, Wolfe Research warns that more adverse scenarios cannot be ruled out, especially as missile interceptor stockpiles dwindle. The market has reacted sharply to the regional tensions, with Brent futures surging 8.6% to $84.36 a barrel and West Texas Intermediate climbing 8.3% to $77.12.