Oil Prices Jump Over 7% After West Asia Attacks Disrupt Global Supply

Oil prices rose sharply on Monday, March 2, 2026, after U.S. and Israeli attacks on Iran and retaliatory strikes across the Gulf disrupted the global energy supply chain.

Traders reacted to concerns that crude exports from Iran and other West Asian producers could slow or halt. Attacks across the region, including on two vessels passing through the Strait of Hormuz, restricted the movement of oil shipments.

West Texas Intermediate crude was trading at about 72 dollars a barrel early Monday, up around 7.3 per cent from about 67 dollars on Friday, February 27, according to data from CME Group.

Brent crude, the international benchmark, was trading at 78.55 dollars per barrel early Monday, up 7.8 per cent from 72.87 dollars on Friday, according to FactSet. Friday’s level had marked a seven month high.

Higher crude prices are expected to increase gasoline and transportation costs. Analysts said consumers may face higher fuel bills and increased prices for goods at a time of elevated inflation.

About 15 million barrels of crude oil per day move through the Strait of Hormuz, accounting for roughly 20 per cent of global supply, according to Rystad Energy. The strait is bordered by Iran to the north and serves as a key route for exports from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.

Iran had temporarily shut parts of the strait in mid February for a military drill. Oil prices rose about 6 per cent in the days that followed.

On Sunday, eight members of OPEC+ announced they would increase crude production. The Organisation of the Petroleum Exporting Countries said output would rise by 206,000 barrels per day in April. The increase was larger than analysts had expected.

Countries boosting output include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

Jorge León, senior vice president and head of geopolitical analysis at Rystad Energy, said, “Roughly one-fifth of global oil supply passes through the Strait of Hormuz, a vital artery for world trade, meaning markets are more concerned with whether barrels can move than with spare capacity on paper.”

He added, “If flows through the Gulf are constrained, additional production will provide limited immediate relief, making access to export routes far more important than headline output targets.”

Iran exports about 1.6 million barrels of oil per day, largely to China. Any disruption to these exports could tighten global supply further and add upward pressure on prices.