Oil Prices Surge After US and Israeli Strikes on Iran
Oil Prices Surge After US and Israeli Strikes on Iran
By Olga Lebedeva | 3 hours ago
Global oil prices jumped sharply following the escalation of conflict between the United States, Israel, and Iran. On Monday morning, March 2, Brent crude for April delivery soared 14% to $82.37 per barrel, marking its highest level since July 2024, according to dpa. US West Texas Intermediate (WTI) rose to $75.33 per barrel, its highest since June 2025. After the initial surge, prices slightly retreated but remained up around 9%.
📊 Market Context: Oil last traded above $82 per barrel on January 16, 2025. Analysts warn that if the conflict continues, particularly with attacks on oil infrastructure and blocked shipping routes, oil prices could surpass $100 per barrel — a potential 37% increase since February 27.
Gold and Gas Also Hit by Tensions
The escalation has also pushed gold prices higher. On March 2, the price per troy ounce reached $5,393, up 2.2% since February 27, approaching the record high of nearly $5,600 recorded in late January.
Meanwhile, investment bank Goldman Sachs predicts a sharp rise in natural gas prices due to military operations. The Strait of Hormuz handles roughly one-fifth of global liquefied natural gas (LNG) trade, mostly from Qatar. Even a one-month halt in shipments could trigger a 130% increase in European and Asian spot LNG prices.
Iran Restricts Shipping Through the Strait of Hormuz
Following the strikes, Iran announced restrictions on shipping through the Strait of Hormuz, a critical route for about 20% of global oil and up to 30% of LNG. Reuters reports that at least 150 tankers are now waiting near the strait. A complete shutdown could cause a daily shortfall of 10 million barrels, roughly 10% of global consumption.
🚢 Shipping Crisis: At least 150 tankers are now waiting near the Strait of Hormuz, unable to pass through restricted waters.
US and Israeli Military Operations
On February 28, Israel and the US conducted strikes on Iranian territory. US President Donald Trump stated the goal was to dismantle Iran's nuclear program, calling on the Iranian military to stand down and urging citizens to "take their fate into their own hands."
⚠️ Casualty Report: According to the Iranian Red Crescent Society, as of March 1, 201 people were killed and 747 injured in the strikes. Reports confirm the death of Supreme Leader Ayatollah Ali Khamenei, alongside several top officials, including Defense Minister Aziz Nasirzade, Chief of Staff Abdulrahim Musavi, and Revolutionary Guard Commander Mohammad Pakpour.
Iran has retaliated with strikes on Israeli and other Middle Eastern territories, heightening regional tensions and driving further volatility in oil, gold, and gas markets.
Key Market Impacts
- 🛢️ Brent Crude: $82.37 (+14%) — highest since July 2024
- 🇺🇸 WTI: $75.33 — highest since June 2025
- 🥇 Gold: $5,393/oz (+2.2%)
- 🌊 Strait of Hormuz: 20% of global oil, 30% of LNG at risk
📈 Analyst Outlook: Markets remain highly volatile as geopolitical tensions show no signs of de-escalation. Energy prices could continue climbing if infrastructure is targeted.
