Global Oil Prices Surge Amid Iran-US-Israel Conflict Escalation

Global oil prices surged sharply during trading on Monday 2 March 2026 amid escalating conflict in the Middle East. Ongoing US and Israeli military operations against Iran through Sunday evening sparked market concerns over potential disruptions to global energy supplies.

According to reports, Brent crude oil reached a new 52-week high. At 06:00 New York time (ET), Brent crude rose 7.6 per cent to USD 78.41 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude climbed more than 7.4 per cent to USD 72.01 per barrel.

In Europe, major energy companies tracked the volatility, with TotalEnergies advancing 3.6 per cent, followed by Shell gaining 2.2 per cent and BP rising 1.8 per cent.

US President Donald Trump indicated that large-scale military operations, referred to as Operation Epic Fury, would continue until American objectives are achieved. Israel also launched fresh attacks against Iranian and Hezbollah targets in Lebanon on Sunday evening. These operations followed earlier Iranian strikes against military and infrastructure targets across the region.

Market attention has focused on the Strait of Hormuz, a critical shipping lane through which approximately 13–15 million barrels of oil transit daily, representing roughly 20 per cent of global supply. Analysts assessed the probability of a complete closure of the Strait of Hormuz as low, given superior US and Israeli military capabilities to counter Iranian efforts. However, the greatest risk stems from sporadic attacks on tanker vessels transiting the region. During the recent weekend, three tanker vessels were reported attacked, prompting maritime companies to exercise extreme caution when entering the area.

The primary challenge concerns how Asian refineries will secure Middle Eastern oil supplies amid the heightened security risks in the region.