On July 25, crude oil markets experienced extreme volatility as the US-Iran memorandum of understanding entered a "crisis" phase, with transit volume through the Strait of Hormuz dropping to zero . The strategic waterway, through which approximately 20% of global oil supply passes, remained closed, sending shockwaves through global energy markets . Brent crude prices surged to $95–100 per barrel, up 15% week-on-week, as supply disruption fears intensified . The crisis escalated after a series of military skirmishes near the Strait, prompting major tanker operators to suspend voyages through the region . The supply disruption coincided with rising global demand amid the summer driving season and increased consumption from China and India . The White House announced that it was in close contact with its strategic partners to mitigate the supply impact, while Saudi Arabia agreed to increase production by 500,000 bpd to calm markets . However, the spare capacity buffer remained thin, and analysts warned that a prolonged closure could push oil prices above $120 per barrel . The volatility in oil markets cascaded into other commodities, with precious metals and industrial metals also recording sharp price swings .