Oil prices soared on Monday, March 2, 2026, amid escalating violence in West Asia that has disrupted key export routes and heightened concerns over global energy stability. Attacks across the region, including on two vessels passing through the Strait of Hormuz—the strategic waterway at the Persian Gulf’s mouth—have significantly hampered countries’ ability to export oil, triggering a sharp increase in prices.
Market traders anticipate that ongoing disruptions could lead to a slowdown or halt in oil shipments from Iran and other West Asian producers. Experts warn that prolonged attacks may push crude oil and gasoline prices even higher.
West Texas Intermediate (WTI), the benchmark U.S. crude, climbed approximately 7.3%, trading at around $72 per barrel early Monday, up from about $67 on Friday, according to CME Group data. Meanwhile, Brent crude, the international standard, reached $78.55 per barrel—an increase of 7.8% from $72.87, which was a seven-month high on Friday, as per FactSet.
The attacks come amid intense military exchanges, with the U.S. claiming to have destroyed the headquarters of Iran’s Revolutionary Guards after striking over 1,000 targets in Iran. The escalation follows U.S. and Israeli strikes against Iran and retaliatory attacks targeting Israel and U.S. military installations across the Gulf region.
The Strait of Hormuz, through which approximately 15 million barrels of crude daily—about 20% of global oil—passes, remains the world’s most critical oil chokepoint. Tankers from countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE, and Iran utilize this narrow waterway, making its security vital for global energy supplies.
In response to the turmoil, eight OPEC+ nations—including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—announced plans to increase crude production by 206,000 barrels per day starting in April. This boost was pre-planned prior to the current conflict but aims to mitigate supply concerns.
However, analysts emphasize that supply constraints through the Gulf remain a major concern. Jorge León, senior vice president at Rystad Energy, stated, “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, which exports roughly 1.6 million barrels daily—mainly to China—may face supply disruptions if its exports are curtailed, further driving up energy prices globally. With tensions escalating, markets remain highly sensitive to the potential for sustained disruptions in the region’s vital oil infrastructure.