The U.S. and Israel's war with Iran has started to ripple through global energy markets.

From Marketplace, I'm Sabri Benishore, in for David Brancaccio.

Three ships have been attacked in the Persian Gulf.

A refinery in Saudi Arabia was temporarily shut down after it was attacked by drones.

Iran has said it has closed navigation through the Strait of

Hormuz, and hundreds of ships are now sitting idle, unwilling or unable to pass through.

Brent crude prices are up more than 8.8%. West Texas Intermediate is up 8%. Joining us to talk

about it is Fernando Valley. He's managing director of energy for the investment firm

hedge eye risk management. Welcome. Thank you. Glad to be here.

Oil futures, oil prices are up, supply and demand. What specific developments in this conflict

are pushing those prices up right now? I think there are a few aspects here. One, obviously,

is the disruption, the immediate disruption that you're seeing.

There are fewer tankers coming around the bend on the Stradaramos, which is close to 30% of world oil production.

That is a combination of both just pausing because of the attacks and not to have any risk.

But then there's also the issues of insurance and several insurance companies canceling

insurance for ships transiting in the Strait of Hormuz.

And that kind of disruption would force the oil market to consider some form of rerouting.

There's just not a lot of ways to reroute that much oil within a very short time frame.

How big of an oil producer is Iran and where does that oil go and is that oil not flowing now?

The oil is still flowing. There's been no news of an attack on Carver Island, which is their main

export hub. It accounts for 80% of exports. Iran's a fairly large producer, close to 4 million barrels a day.

They export just under 2 million barrels a day, which primarily goes to China.

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