Global Oil Prices Surge Following US Strikes on Iran
Global oil prices surged again during Monday trading on 2 March amid escalating conflict between the United States and Israel against Iran. The price spike was further fuelled by the closure of one of the world’s most vital oil trading routes, the Strait of Hormuz, by Iran’s Islamic Revolutionary Guard Corps (IRGC).
According to Trading Economics data, Brent crude oil prices jumped as much as 12 per cent on Monday morning at market open. Brent crude penetrated US$78.2 per barrel, up from the close of trading on 28 February, which was recorded at US$72.8 per barrel.
Meanwhile, West Texas Intermediate (WTI) crude oil prices rose to approximately US$71.9 per barrel, surging compared to the close of trading on 28 February 2026, which was recorded at US$67.2 per barrel.
Middle Eastern tensions peaked after the United States and Israel launched a combined military offensive against Iran on Saturday, 28 February 2026. US President Donald Trump announced that the strike killed Iran’s supreme leader, Ayatollah Ali Khamenei. Iran retaliated by launching waves of missiles and drones against Israel and several military bases across the Middle East where US troops are operating.
The conflict has shown no signs of abating. According to the Daily Mail on 2 March 2026, Donald Trump indicated that a potential war with Iran could last up to four weeks.
An oil and gas industry expert from the National Oil and Gas Companies Association (Aspermigas), Moshe Rizal, stated that oil and gas commodity prices risk rising further amid the deteriorating Middle East situation, particularly given the blockade of the Strait of Hormuz.
The Strait of Hormuz carries approximately 20 per cent of global oil and gas trade. “So liquefied natural gas, oil, fuel and other products mostly transit through the Strait of Hormuz for the Middle East and Europe,” he said when contacted on Sunday, 1 March 2026.
Following Iran’s closure of Hormuz, trade has been forced to shift to alternative routes. Rerouting is neither easy nor cost-effective. Consequently, global oil prices are likely to increase substantially.