Global oil prices surged and stock markets fell as escalating conflict in the Middle East led to attacks on ships near the Strait of Hormuz.

• Brent crude jumped by 10% to over $82 a barrel, and natural gas prices rose by up to 25%.
• The conflict involves ongoing strikes by Iran in response to attacks by the US and Israel.
• Major stock markets in Europe experienced significant drops of around 1.6% to 1.7%, with airline shares particularly affected.

Kenya's vital tea export sector faces significant uncertainty due to the escalating Middle East crisis, disrupting supply chains to key Gulf markets.

• Kenya exported approximately 13 million kilograms of tea to Iran in 2024, valued at Sh4.26 billion.
• Key markets for Kenyan tea include Pakistan, Egypt, the United Kingdom, the United Arab Emirates, and Iran.
• Disruptions along vital shipping routes like the Strait of Hormuz and regional air corridors are increasing freight costs and transit times, impacting exporter competitiveness.

In response to Iran's closure of the Strait of Hormuz amid heightened Middle East tensions, Thailand has ordered an immediate suspension of oil exports and established an emergency energy monitoring center.

• Thailand has reserves sufficient for approximately 38 days of domestic demand (crude oil and refined products).
• The Minister of Energy, Auttapol Rerkpiboon, announced the measures.
• The government plans to boost natural gas production and activate the oil fund to subsidize domestic fuel prices.

Tokyo stocks experienced a significant downturn on Monday, with the benchmark Nikkei index dropping over 2 percent. The decline was primarily driven by concerns following joint military strikes by the United States and Israel on Iran.

• The Nikkei index ended down 793.03 points, or 1.35 percent, at 58,057.24.
• Key players involved include the United States, Israel, and the Iranian government.
• Contributing to the market's volatility was the reported shutdown of the Strait of Hormuz, raising fears of oil supply disruptions.

The ongoing Middle East crisis has significantly impacted air travel, leading to widespread flight cancellations and rerouting, with Jomo Kenyatta International Airport (JKIA) experiencing a surge in parked aircraft.

• Major airlines like Qatar Airways, Emirates Airways, and Ethiopian Airlines have cancelled numerous flights to and from the region.
• Kenya Airways is also affected, temporarily suspending flights to the United Arab Emirates.
• Passengers are facing uncertainty, with many flights grounded and communication from airlines limited due to airspace closures in countries like Qatar and across the Middle East.