As conflict in the Middle East intensifies, economist, Keenan Falconer is warning that global oil prices could surge.

Iran has pushed what many are calling the panic button by closing the Strait of Hormuz in response to Saturday’s attack on its territory by the United States and Israel.

Iran’s Supreme Leader is among those allegedly killed.

The Strait of Hormuz is a major shipping route that passes through the territorial waters of Iran.

It is located between the Persian Gulf and the Gulf of Oman and is considered a key choke point for global oil shipping.

The strait’s closure comes amidst Iran’s retaliatory strikes targeting what is said to be U.S. military bases in Doha, Bahrain and Kuwait.

There have been reports of strikes elsewhere.

Speaking with IRIE FM News, Mr. Falconer stresses the importance of tracking the situation as it may pose significant inflation risks.

The spike in oil costs could also have a knock-on effect on goods that rely on fuel for them to be manufactured or transported.

Mr. Falconer says this is particularly concerning for countries like Jamaica due to the extent of its import dependence to satisfy its energy and transport needs.