Oil Prices Surge Past $100 as US-Israel Conflict with Iran Escalates

The international price of oil exceeded $100 per barrel on Sunday, March 8, 2026, for the first time in over three and a half years, driven by the war between the United States and Israel against Iran and its direct effects on the production and transportation of crude oil in the Middle East.

Brent crude, an international benchmark, was trading at $101.19 shortly after markets resumed operations on the Chicago Mercantile Exchange, an increase of 9.2% compared to its closing price on Friday, which was $92.69. West Texas Intermediate (WTI), of American production, reached $107.06 per barrel, an increase of 16.2% compared to its previous close of $90.90.

Strait of Hormuz Blockade and Global Supply Concerns

These increases add to those recorded last week, when WTI rose 36% and Brent rose 28%. The central trigger is the effective blockade of the Strait of Hormuz: around 15 million barrels of crude oil pass through this route daily, equivalent to approximately 20% of the world’s oil consumption, according to research firm Rystad Energy. Rystad Energy

The threat of attacks with Iranian missiles and drones has almost completely halted the passage of tankers through the strait, which borders the coasts of Iran to the north and serves as an outlet for oil and gas produced in Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran itself.

Trump Defends Military Intervention

Facing criticism for the price increase, U.S. President Donald Trump defended the military intervention on Sunday through his account on Truth Social. Trump stated that the rise in crude oil prices is a temporary and justified cost. “Short-term oil prices, which will fall rapidly when the destruction of the Iranian nuclear threat ends, are a very small price to pay for the security and peace of the United States and the world. Only fools would think differently!” Trump wrote.

Regional Production Cuts and Infrastructure Attacks

Iraq, Kuwait, and the United Arab Emirates have reduced their oil production as storage tanks fill, a direct consequence of the inability to export crude oil. Iran, Israel, and the United States have attacked oil and gas facilities since the start of the conflict, heightening concerns about global supply.

The conflict began on March 1, 2026, when Israel and the United States launched attacks on Iran. This weekend, the Israeli military hit oil depots in Tehran, as well as four storage tankers and an oil transfer terminal.

Mohammad Bagher Qalibaf, speaker of the Iranian Parliament, warned that the impact of the war on the industry has not reached its most critical point. “It could soon be more difficult to produce and sell oil,” Qalibaf said.

Iran exports approximately 1.6 million barrels of crude oil a day, with China as its main buyer. If Iranian exports are interrupted, China would have to seek alternative suppliers, a factor that could further pressure international prices.

Impact on U.S. Consumers

The conflict is likewise being felt by American consumers. A gallon of regular gasoline rose to $3.45 this Sunday, about 47 cents more than a week ago, according to AAA. AAA Diesel reached $4.60 per gallon, with a weekly increase of about 83 cents. Natural gas also registered increases, although less than those of crude oil: it rose nearly 11% last week and closed on Friday at $3.19 per thousand cubic feet.

Economic Implications of Sustained High Oil Prices

The last time WTI traded above $100 was on June 30, 2022, when it hit $105.76. Brent surpassed that threshold for the last time on July 29, 2022, reaching $104.

Analysts and investors believe that if oil remains above $100 per barrel, the consequences for the global economy could be difficult to sustain. Rising energy prices fuel inflation and threaten to reduce spending by American consumers, considered the main driver of the global economy.

New Leadership in Iran

Political hardliners have swiftly rallied behind Mojtaba Khamenei after he was named Iran’s new supreme leader. The US President Donald Trump said last week that the younger Khamenei being selected would be “unacceptable” to him.

Israel’s attacks on Iran’s energy resources and fuel storage sites have pushed the war into a “new phase,” a senior Iranian official has warned, and threatened retaliatory strikes on energy infrastructure across the region. CNN