Goldman Sachs flagged risks to global energy supply amid concerns over a potential disruption in the Strait of Hormuz that would lead to significant spikes in oil and natural gas prices, the bank said in a note dated Sunday.

Fears of a major oil supply shock are mounting as tensions escalate in the Strait of Hormuz, a vital artery for nearly 20% of global crude shipments, with Wall Street racing to assess the potential price impact after the U.S. struck Iran over the weekend.

Goldman Sachs has issued a warning about growing risks to global energy markets, pointing to potential disruptions in the Strait of Hormuza vital chokepoint for oil and gas shipments. In a research note dated Sunday,