While global energy markets are not yet pricing in worst-case scenarios for the Israel-Iran war, oil tanker rates are providing a good real-time gauge of the escalating risks.

Conflicts in the Middle East raise risk premiums, which is a further reason why global equity markets have dipped,' Stephen Dover said.

Oil traded near a five-month high and most Asian stocks followed US losses on Wall Street as concerns mounted that an escalation of tensions in the Middle East will trigger more direct American involvement.