The Globe and Mail reports in its Monday, Oct. 7, edition that the Middle East conflict is affecting global oil markets. The Globe's Brent Jang and Emma Graney write that Organization of Petroleum Exporting Countries members Saudi Arabia, United Arab Emirates, Kuwait and Iraq have enough spare capacity to cover for lost Iranian production. If Israel were to strike Iran's oil facilities, any resulting price shock is expected to be short-lived. However, it is difficult to predict the repercussions if the crucial Strait of Hormuz were to be closed for an extended period, according to an analysis by Poten & Partners. It said, "Oil markets currently have ample spare capacity, which is helping stabilize prices, even amidst a severe crisis in the Middle East." Regional conflict has caused minimal disruption of Iranian production over the past year, but the possibility of an Israeli counterattack could change that. Poten said, "An escalation of the hostilities involving Iran's oil infrastructure has the potential to create havoc in the oil and tanker markets." The recent increase in oil prices triggered by the Middle East conflict prompted the S&P/TSX Capped Energy Index to gain 8.5 per cent last week.