Oil Prices Surge Over 8% as US-Iran Conflict Escalates

Global oil prices jumped sharply on Monday as escalating hostilities between the United States and Iran rattled energy markets, raising concerns about supply disruptions across the Middle East.

Benchmark crude contracts recorded gains of more than 8 per cent in early trading, with investors reacting to reports of military escalation over the weekend. Analysts said the spike reflects heightened fears over the stability of supplies from one of the world’s most critical oil-producing regions.

As of approximately 8:00 AM PST on March 2, market data showed:

• WTI Crude: $72.39, up $5.37 (8.01%)

• Brent Crude: $79.04, up $6.17 (8.47%)

• Murban Crude: $81.53, up $7.29 (9.82%)

• Natural Gas: $2.878, up $0.019 (0.66%)

Brent crude initially surged more than 10 per cent, briefly crossing the $80 mark, before easing slightly in early trading. Market volatility intensified following reports of US and Israeli strikes targeting Iran, triggering concerns over possible retaliation and broader regional instability.

Energy analysts warned that prolonged conflict could push oil prices toward the $100 per barrel level, particularly if supply routes in the Strait of Hormuz face disruption. The waterway is a critical transit corridor for a significant share of global crude exports.

The surge comes despite ongoing output adjustments by OPEC+, as traders weigh geopolitical risk premiums against supply management efforts by major producers.

International financial media reported that US crude rose by roughly $5 per barrel during early sessions, while broader energy markets remained on edge amid continued military developments.

Experts cautioned that sustained price increases could translate into higher fuel costs globally, potentially complicating inflation management and economic recovery efforts in several countries.

While natural gas recorded only modest gains, oil markets are expected to remain volatile as investors monitor further developments in the region.