Oil Prices Surge as Iran Conflict Disrupts Middle East Supply

Oil prices experienced a significant surge on Monday, March 2, 2026, following coordinated military strikes by the United States and Israel on Iran. The attacks have escalated conflict in the Middle East and are disrupting crude oil supplies from the region.

Price Increases and Market Reaction

Brent crude, the international benchmark, soared as much as 13 percent to $82.37 a barrel in the first trading session since the attacks began, before settling up 7 percent in London trading. Gold prices also rose, increasing 1.6 percent to $5,362 a troy ounce as investors sought safe haven assets. The dollar strengthened, rising 0.4 against a basket of key trading partners.

Stock markets in Asia declined on Monday, with Japan’s Topix and Hong Kong’s Hang Seng index falling 1.5 percent and 1.4 percent, respectively. Futures tracking the S&P 500 indicated a 0.8 percent drop when Wall Street reopens, while Nasdaq 100 futures remained steady.

Disruption to Oil and Gas Flow

Activity in the Strait of Hormuz, a critical waterway through which approximately 20 percent of the world’s oil and gas flows, has slowed to a near standstill following the strikes [1]. Tehran’s retaliatory strikes on its Gulf neighbors also pose a threat to regional infrastructure vital to the global energy market [1].

According to Norbert Rücker, head of economics at Julius Baer, “The implications of this conflict for the world economy depend on the flow of oil and gas through the Strait of Hormuz.” He added that the most significant concern isn’t the complete closure of the Strait, but rather serious damage to key oil and gas infrastructure [1].

Impact on Natural Gas Deliveries

The conflict also raises concerns about global natural gas deliveries. The United States and Israel launched coordinated military strikes against Iran early Saturday, a major escalation of conflict that could impact oil and natural gas supplies globally [4]. The Strait of Hormuz is a particularly vulnerable point for natural gas shipments [4].

Broader Regional Concerns

The widening military conflict in the Persian Gulf has already begun to disrupt shipping in one of the world’s biggest oil-and-gas producing regions, threatening to send energy prices soaring [3]. Iran still has a significant ability to influence global energy markets [1].