Crude oil prices spike near $120 a barrel as the Iran war impedes
production and shipping
[March 09, 2026] By
ALEX VEIGA and ELAINE KURTENBACH
CHICAGO (AP) — Oil prices spiked near $120 per barrel before falling
back Monday as the Iran war intensified, threatening production and
shipping in the Middle East and pummeling financial markets.
The price for a barrel of Brent crude, the international standard,
surged to $119.50 per barrel early in the day but later was trading near
$105 per barrel.
West Texas Intermediate, the light, sweet crude oil produced in the
United States, spiked at $119.48 per barrel but fell back to $102 per
barrel.
The war’s toll on civilian targets grew as Bahrain accused Iran of
striking a desalination plant vital to drinking water supplies.
Bahrain's national oil company declared force majeure for its shipments
after an Iranian attack set its refinery refinery ablaze. The legal
maneuver releases the company of contractual obligations because of
extraordinary circumstances.
Oil depots in Tehran smoldered following overnight strikes by Israel.
Oil prices have surged as the war, now in its second week, ensnares
countries and places that are critical to the production and movement of
oil and gas from the Persian Gulf.
Prices moderated after the Financial Times reported that some members of
the Group of Seven industrial nations were considering releases of
strategic oil reserves to alleviate pressure on the markets. The
unconfirmed report cited unnamed people familiar with the talks.
On Saturday, President Donald Trump downplayed the idea of turning to
America’s Strategic Petroleum Reserve, saying U.S. supplies were ample
and prices would soon fall.
Roughly 15 million barrels of crude oil — about 20% of the world’s oil —
typically are shipped every day through the Strait of Hormuz, according
to independent research firm Rystad Energy. The threat of Iranian
missile and drone attacks has all but stopped tankers carrying oil and
gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab
Emirates and Iran from traveling through the strait, which is bordered
in the north by Iran.
Iraq, Kuwait and the UAE have cut oil production as storage tanks fill
due to the reduced ability to export crude. Iran, Israel and the United
States also have attacked oil and gas facilities since the war started,
worsening supply concerns.
The surge in costs for oil and natural gas is pushing fuel prices
higher, cascading through other industries and jolting Asian economies
that are especially vulnerable due to the region's heavy reliance on
imports from the Middle East.
Iran exports roughly 1.6 million barrels of oil a day, mostly to China,
which has called for an immediate end to the fighting. Beijing may need
to look elsewhere for supply if Iran’s exports are disrupted, another
factor that could increase energy prices.
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A thick plume of smoke rises from an oil storage facility hit by a
U.S.-Israeli strike late Saturday in Tehran, Iran, Sunday, March 8,
2026. (AP Photo/Vahid Salemi)
 “All parties have their
responsibility to ensure stable and smooth energy supplies,” Chinese
Foreign Ministry spokesman Guo Jiakun said in a briefing Monday.
“China will take necessary measures to safeguard its own energy
security.”
South Korean President Lee Jae Myung warned Monday
of strict penalties for refiners and gas stations caught hoarding or
colluding on prices, saying it would be wise to find alternatives to
supplies that must travel through the Strait of Hormuz.
Across Southeast Asia, the spike in prices has led to long lines
outside filling stations.
“Higher oil and gas prices will affect everyone and our economy,”
said Le Van Tu, who was waiting outside a gas station in the
Vietnamese capital Hanoi. "All activities, including those using
petrol based transportation will be affected.”
The last time Brent and U.S. crude futures traded near the current
level was in 2022, after Russia invaded Ukraine.
Higher energy costs push inflation higher, straining household
budgets and denting the consumer spending that is a main driver of
many big economies. Those worries have spilled into financial
markets, pulling share prices sharply lower.
In the U.S., the average price of a gallon of regular gasoline rose
to $3.48 as of early Monday, up nearly 50 cents from a week earlier,
according to AAA motor club. Diesel was selling for about $4.66 a
gallon, a weekly increase of more than 80 cents.
If oil prices stay above $100 per barrel, some analysts and
investors say it could be too much for the global economy to
withstand.
The price of natural gas in the U.S. also has climbed during the
war, though not by as much as oil. It was selling for about $3.34
per 1,000 cubic feet early Monday. That’s up from Friday's closing
price of $3.19.
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