Major oil price shock looming as Israel-Iran conflict threatens critical global shipping passage

If the escalating conflict between Israel and Iran significantly cuts supply in the global oil market, prices could surge to as much as $120 a barrel due to a potential threat to a significant shipping lane, according to industry experts.

The price of West Texas Intermediate, a key crude oil benchmark, is sitting around a one-year high, while global benchmark Brent Crude is nearing a five-month high Wednesday as the conflict between Israel and Iran enters its sixth day.

President Donald...