Oil Prices Jump Up To 12% As Middle East Conflict Sparks Supply Fears

VoM News Desk | March 2, 2026 | 05:48 AM IST | Breaking News, Business, World | Follow on Google News

Oil Prices Jump Up To 12% As Middle East Conflict Sparks Supply Fears

Oil prices surged sharply as Asian markets opened on Monday, after coordinated US and Israeli strikes on Iran intensified fears of a wider regional conflict and potential disruption to global energy supplies.

International benchmark Brent crude climbed more than 12 per cent at one stage to around $82 a barrel, up from just over $73 at Friday’s close. By mid-morning in Asia, it was trading near $79.30, still up nearly 9 per cent.

US benchmark West Texas Intermediate (WTI) also spiked, rising about $8 — or roughly 12 per cent — to around $75 a barrel before easing slightly to trade near $72, up around 8 per cent.

The sharp gains add to an already strong year for oil markets, with benchmark prices having risen roughly 20 per cent since January.

Strait Of Hormuz In Focus

Particular concern centres on the Strait of Hormuz, the narrow gateway to the Persian Gulf through which an estimated 15 million barrels of crude oil pass daily — roughly a fifth of global supply, according to Rystad Energy.

Tankers transiting the strait transport oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran. Reports of attacks on vessels in the region have heightened fears that shipments could slow or halt, potentially restricting exports and pushing crude and petrol prices higher worldwide.

Jorge León, senior vice-president of geopolitical analysis at Rystad, said markets are increasingly focused on whether oil can physically move through the Gulf rather than on theoretical spare production capacity.

“If flows through the Gulf are constrained, additional production will provide limited immediate relief,” he warned.

Markets React To Escalation

US stock futures fell more than 1 per cent amid rising geopolitical uncertainty, while shares of major oil producers such as ExxonMobil and Chevron gained around 2 per cent in early trading.

The conflict between Iran, the United States and Israel has escalated into one of the most serious Middle East crises in years. Coordinated air and missile strikes across Iran have triggered extensive retaliation, with missile and drone attacks targeting Israeli and US-linked sites across the Gulf and neighbouring states.

With casualties mounting, airspace disruptions spreading and energy routes under threat, global markets are reacting to the heightened risk of prolonged hostilities. International calls for restraint have intensified, even as Tehran signals continued retaliation and uncertainty grips energy markets.

VoM News Desk

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