Oil prices surged past $110 a barrel Sunday evening, marking the highest level in nearly four years. The Brent crude benchmark climbed as traders grew increasingly concerned about energy supplies amid the ongoing Middle East conflict. Stock futures fell sharply, with S&P 500, Nasdaq, and Dow Jones contracts all dropping roughly 1.5 percent before Monday's market open.

Energy markets reacted to the near-closure of the Strait of Hormuz, a critical waterway through which one-fifth of global oil and substantial natural gas supplies normally pass daily. The disruption has prevented fuel from the Persian Gulf from reaching international markets for over a week. Energy Secretary Chris Wright downplayed long-term concerns, telling CNN that the world is not short on oil or natural gas today.

The price spike comes as U.S. gasoline prices have climbed 16 percent since the war began, reaching a national average of $3.45 per gallon. Diesel prices have risen even faster, jumping about 22 percent. Wright suggested that any shipping disruptions through the strait would last weeks at most, not months, though market participants clearly remain nervous about supply chain vulnerabilities.