Oil and gas prices surge as Iran war escalates

Conflict in the Middle East disrupts global energy supplies, sending prices soaring

Published on Mar. 8, 2026

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Oil prices have surged past $90 per barrel, up 36% from a week ago, as the ongoing war between the U.S., Israel, and Iran has disrupted global energy supplies. Shipments through the Strait of Hormuz, a critical chokepoint for oil transport, have been halted, and key oil and gas facilities in the region have been damaged by missile and drone strikes. This has led to a supply shortage, with roughly 9 million barrels per day taken offline, causing prices for gasoline, diesel, and jet fuel to skyrocket worldwide.

Why it matters

The sharp rise in oil and gas prices is having a major economic impact, driving up costs for consumers and businesses across the globe. This comes at a time when many are already struggling with high inflation and the lingering effects of the pandemic. The conflict in the Middle East shows no signs of resolution, raising concerns that these elevated energy prices could persist for an extended period.

The details

The conflict began when the U.S. and Israel launched major attacks on Iran, which then retaliated with strikes on facilities in Saudi Arabia and Qatar. This has left ships carrying 20 million barrels of oil per day stranded in the Persian Gulf, unable to safely pass through the Strait of Hormuz. Additionally, key oil and gas infrastructure in the region has been damaged, leading Kuwait to reduce its own production as a precaution. As a result, roughly 9 million barrels per day have been taken offline, causing a severe supply shortage.

  • On March 3, 2026, oil prices surpassed $90 per barrel, up 36% from the previous week.
  • On March 4, 2026, President Trump said the U.S. military operations against Iran were expected to last 4-5 weeks, but the U.S. has 'the capability to go far longer.'

The players

Donald Trump

The President of the United States who said the U.S. military operations against Iran were expected to last 4-5 weeks, but the U.S. has 'the capability to go far longer.'

Kuwait

A major oil producer that said it would reduce its oil production as a 'precautionary' measure due to the war in the Middle East.

Iran

A country that has launched a series of retaliatory attacks, including a drone strike on the U.S. Embassy in Saudi Arabia, and hit a major refinery in Saudi Arabia and an LNG facility in Qatar, halting flows of refined products and taking about 20% of the world's LNG supply offline.

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What they’re saying

“It's crazy. It's not needed, especially at a time when people are already struggling, but not unexpected from all this turmoil that's going on.”

— Mark Doran, Resident of Middlebury, Vermont (AP)

“The more news we get, the more it seems like this is going to last a really long time.”

— Al Salazar, Head of macro oil and gas research at Enverus (AP)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The escalating conflict in the Middle East has disrupted global energy supplies, sending oil and gas prices soaring and causing significant economic pain for consumers and businesses worldwide. With no clear end in sight to the hostilities, these elevated energy costs could persist for the foreseeable future, underscoring the need for long-term solutions to enhance energy security and reduce reliance on volatile regions.