Oil prices rise sharply after attacks in Middle East disrupt global
energy supply
[March 02, 2026] By
CATHY BUSSEWITZ
NEW YORK (AP) — Oil prices rose sharply Monday as U.S. and Israeli
attacks on Iran and retaliatory strikes against Israel and U.S. military
installations around the Gulf sent disruptions through the global energy
supply chain.
Traders were betting the supply of oil from Iran and elsewhere in the
Middle East would slow or grind to a halt. Attacks throughout the
region, including on two vessels traveling through the Strait of Hormuz,
the narrow mouth of the Persian Gulf, have restricted countries’ ability
to export oil to the rest of the world. Prolonged attacks would likely
result in higher prices for crude oil and gasoline, according to energy
experts.
West Texas Intermediate, the light, sweet crude oil produced in the
United States, was selling for $72.79 a barrel early Monday, up 8.6%
from its trading price of about $67 on Friday, according to data from
CME group.
A barrel of Brent crude, the international standard, was trading at
$79.41 per barrel early Monday, according to FactSet, up 9% from its
trading price of $72.87 on Friday, at the time a seven-month high.
Higher global energy prices mean consumers will pay more for gasoline at
the pump and have to shell out more for groceries and other goods at a
time when many are already feeling the impacts of elevated inflation.
Roughly 15 million barrels of crude oil per day — about 20% of the
world’s oil — are shipped through the Strait of Hormuz, making it the
world’s most critical oil chokepoint, according to Rystad Energy.
Tankers traveling through the strait, which is bordered in the north by
Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain,
the UAE and Iran.
Iran temporarily shut down parts of the strait in mid-February for what
it said was a military drill, which led oil prices to jump about 6%
higher in the days that followed.
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Fishermen work in front of oil tankers south of the Strait of Hormuz
Jan. 19, 2012, offshore the town of Ras Al Khaimah in United Arab
Emirates. (AP Photo/Kamran Jebreili, File)
 Against that backdrop, eight
countries that are part of the OPEC+ oil cartel announced they would
boost production of crude Sunday. The Organization of Petroleum
Exporting Countries, in a meeting planned before the war began, said
it would increase production by 206,000 barrels per day in April,
which was more than analysts had been expecting. The countries
boosting output include Saudi Arabia, Russia, Iraq, the United Arab
Emirates, Kuwait, Kazakhstan, Algeria and Oman.
“Roughly one-fifth of global oil supply passes through the Strait of
Hormuz, a vital artery for world trade, meaning markets are more
concerned with whether barrels can move than with spare capacity on
paper,” said Jorge León, Rystad's senior vice president and head of
geopolitical analysis, in an email. "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 exports roughly 1.6 million barrels of oil a day, mostly to
China, which may need to look elsewhere for supply if Iran’s exports
are disrupted, another factor that could increase energy prices.
However, China has ample strategic oil reserves and also could boost
imports from Russia, analysts said.
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