Oil Prices Surge After Attacks Disrupt Global Energy Supply

Strikes on Iran and U.S. installations in the Gulf restrict oil exports, sending crude prices sharply higher.

Published on Mar. 2, 2026

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Oil prices rose sharply on Monday as U.S. and Israeli attacks on Iran and retaliatory strikes against Israel and U.S. military installations around the Gulf disrupted the global energy supply chain. Traders are concerned that the supply of oil from Iran and the broader Middle East region will slow or halt, leading to higher prices for crude oil and gasoline.

Why it matters

Roughly 20% of the world's oil supply passes through the Strait of Hormuz, a critical chokepoint bordered by Iran. Disruptions to oil flows through the strait could lead to significant price increases for consumers at the gas pump and higher costs for goods and services dependent on energy prices.

The details

West Texas Intermediate crude oil rose about 7.3% to $72 per barrel, while Brent crude jumped 7.8% to $78.55 per barrel. The attacks have restricted countries' ability to export oil, with tankers traveling through the Strait of Hormuz facing risks. In response, OPEC+ announced it would increase production by 206,000 barrels per day in April, more than analysts expected, but experts say additional supply may provide limited relief if export routes are constrained.

  • On Monday, March 2, 2026, oil prices rose sharply in response to the attacks.
  • In mid-February 2026, Iran had temporarily shut down parts of the Strait of Hormuz for a military drill, leading oil prices to jump about 6%.

The players

West Texas Intermediate

The light, sweet crude oil produced in the United States.

Brent crude

The international standard for crude oil.

OPEC+

The Organization of Petroleum Exporting Countries and its allies, who announced they would boost production in response to the disruptions.

Iran

A major oil exporter, responsible for roughly 1.6 million barrels of oil per day, mostly to China.

Strait of Hormuz

A vital chokepoint for global oil trade, through which roughly 20% of the world's oil supply passes.

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What they’re saying

“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.”

— Jorge León, Senior Vice President and Head of Geopolitical Analysis, Rystad Energy

What’s next

The OPEC+ group will continue to monitor the situation and may adjust production levels further if the disruptions to oil exports persist.

The takeaway

The attacks on Iran and U.S. installations in the Gulf have highlighted the vulnerability of the global energy supply chain, with the Strait of Hormuz serving as a critical chokepoint. Prolonged disruptions to oil flows through the strait could lead to significant price increases for consumers and businesses, underscoring the need for diversified energy sources and supply routes.