Global markets have remained relatively calm amid the escalating tensions between Israel and Iran. But that sentiment could quickly shift, according to experts, if the conflict affects the Strait of Hormuz.

Tensions at the Strait of Hormuz risk 20M bpd in crude oil flow, fueling a sharp rally in oil futures and boosting market volatility.

Oil prices were stable on Monday after Iran's oil production infrastructure was excluded from intensification of military conflict with Israel, while the Strait of Hormuz remains open

There are reports that a few shipping lines may be reassessing routes, particularly the choke point of the Strait of Hormuz, given the heightened threat in the region. This could further add to the transportation cost to and from the region.

The CEOs of Baker Hughes (BKR) and Australia-based Woodside Energy, two of the largest energy companies in the world, said they couldn’t make firm predictions on oil prices amid the rising conflict between Iran and Israel,

Global oil prices are surging in anticipation of a supply shock due to the escalating conflict around the Strait of Hormuz, according to Petroliam Nasional Bhd (Petronas). At the time of writing, the Brent crude oil price rose 0.97 percent to US$74.95 per barrel.