The Real Impact of the Iran War: Global Oil Prices Soar Above US$80 per Barrel

Escalating conflict in the Middle East involving Iran, the United States and Israel is intensifying by the day, disrupting energy supply chains and pushing world oil prices above US$80 per barrel. According to CNBC International, West Texas Intermediate crude jumped 8.51% or US$6.35 to US81.01, basedonanexchangerateofRp16, 920perUS. That marks the biggest daily gain since May 2020. Brent rose 4.93% or US$4.01, closing at US$85.41 per barrel. US price momentum has added around 21% in the first half of March 2026. Retail gasoline prices in the US have risen by about 27 cents since last week to an average of US$3.25 per gallon; the last time prices surged similarly was March 2022 after Russia invaded Ukraine. U.S. President Donald Trump said he would take further action to ease pressure on the energy sector, including offering political risk insurance and naval escort for tankers. Meanwhile, Iran claimed to have attacked an oil tanker with missiles, while the Islamic Revolutionary Guard Corps (IRGC) ordered the closure of the Strait of Hormuz earlier this week and threatened to strike tankers passing the area. Iran’s claim aligns with reports by the Royal Navy of a large explosion aboard a tanker anchored in Iraqi territorial waters; the ship’s captain reported a small boat fleeing the scene. The crew were rescued and no fire was reported. Tanker traffic through the Strait of Hormuz has been brought to a complete standstill since the US-Israel campaign against Iran began, raising concerns among shipowners about security. The Strait of Hormuz handles around 20 percent of global oil consumption. Tankers from various nations are now trapped in the northern Gulf, thinning energy reserves across countries.