US and Israel Attack on Iran Fuels Oil Price Volatility

Geopolitical tensions in the Middle East are significantly impacting global energy commodity prices, with the recent joint military action by the United States and Israel against Iran taking center stage. Market participants are closely monitoring the situation for potential disruptions to world crude oil supplies. The death of Iran’s Supreme Leader Ayatollah Ali Khamenei, confirmed on Sunday, March 1, 2026, has further escalated concerns, prompting Iran to threaten closure of the Strait of Hormuz.

Oil Price Performance: A Week of Escalation

During the week of February 23-27, 2026, global oil prices exhibited dynamic movements. Brent crude opened at $71.49 per barrel on February 23rd, although West Texas Intermediate (WTI) began the week at $66.31 per barrel. Prices consolidated mid-week, reaching $70.75 for Brent and $65.21 for WTI on February 26th. However, a notable increase occurred at the close of trading on February 27th, with Brent closing up approximately 2% at $72.48 per barrel and WTI at $67.02 per barrel. This weekend surge indicates proactive portfolio adjustments by market players in anticipation of heightened regional instability.

Strait of Hormuz: A Critical Chokepoint

Approximately 20% of the world’s total oil consumption is transported through the Strait of Hormuz, a vital waterway connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea . Iran’s threat to close this crucial transit route is a primary driver of market anxiety. Barclays has revised its Brent oil futures price forecast upwards to around $100 per barrel, factoring in logistical risks in Middle Eastern waters .

Global Reactions and UN Condemnation

The attacks have drawn condemnation from the United Nations. UN Secretary-General António Guterres called for an immediate cessation of hostilities and de-escalation, warning of a wider regional conflict with grave consequences . The United States and Israel clashed with Iran at an emergency meeting of the UN Security Council, with many countries urging a return to negotiations. U.S. Allies and adversaries alike have expressed concern over the risks of a new war in the Middle East .

US Involvement and Targets

The joint strike, launched on Saturday morning, targeted key Iranian figures and infrastructure. According to an Israeli official, targets included Supreme Leader Ali Khamenei and President Masoud Pezeshkian . Several senior Revolutionary Guards commanders and political officials were also reportedly killed, including the commander of Iran’s Islamic Revolutionary Guard Corps, Gen. Mohammad Pakpour and Iranian defense minister Aziz Nasirzadeh . US President Donald Trump announced the beginning of “major combat operations in Iran,” stating the goal was to prevent the regime from threatening US national security interests .

Market Outlook

Trading at the beginning of the week is expected to be highly volatile. Price determination will likely be driven more by geopolitical developments and the condition of energy infrastructure than by traditional supply and demand fundamentals. The market will react to real-time information emerging from the region.

Disclaimer: This article provides a journalistic overview of the situation as of March 1, 2026. It is not intended as investment advice. Readers should conduct their own research and consult with a financial professional before making any investment decisions.