Strikes on Iran's Oil Infrastructure Threaten Global Prices as Conflict Escalates

U.S. forces destroyed Iranian naval targets near the Strait of Hormuz early Thursday, as Israel launched strikes on Iran's largest gas field, South Pars, triggering retaliatory attacks on energy facilities across Gulf Arab states.

Video released by U.S. Central Command showed the strikes, which the military says targeted Iranian naval assets threatening international shipping in and around the strait.

The Strait of Hormuz is one of the world's most critical energy chokepoints, and the facilities hit Thursday help set global prices for oil, gas, and countless goods that depend on them. Energy prices surged early Thursday as news of the strikes broke.

Economists are now warning the disruption could trigger a global economic shock, driving up prices and causing shortages for billions of people worldwide.