Oil Prices Surge 13 Per Cent Following US and Israeli Attacks on Iran

Oil prices surged sharply on Asian market opening on Monday, 2 March 2026, after the United States and Israel launched major attacks on Iran. Markets immediately priced in higher risk premiums owing to concerns over potential disruptions to global supply.

Brent crude oil contracts climbed 13 per cent to $82 per barrel, according to Investing.com. This equates to approximately Rp1,378,174 per barrel, assuming an exchange rate of Rp16,807 per dollar. Prices subsequently pulled back marginally after the initial surge.

Iran responded by launching missiles at Israel and several Middle Eastern nations with close ties to the United States, including Bahrain, Kuwait, Qatar, and the United Arab Emirates.

Tensions expanded to global energy corridors. Iran reportedly attacked vessels transiting the Strait of Hormuz. This action triggered concerns over potential disruptions to oil distribution in the near term.

“With retaliatory actions that have now escalated into attacks on oil tankers in the Strait of Hormuz, threats to oil supply have increased substantially,” wrote ANZ analysts in their assessment.

The Strait of Hormuz is a critical shipping lane for global energy trade. Approximately 20 per cent of global oil consumption passes through these waters. Even minor disruptions in this region can immediately drive prices higher.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to increase production by 206,000 barrels per day at a meeting on Sunday. This additional supply is expected to partially cushion pressure resulting from the US-Iran conflict.

The surge in oil prices demonstrates the energy market’s sensitivity to geopolitical risks. The direction of subsequent price movements will be determined by developments in the Strait of Hormuz and further responses from both sides.