Chicago – March 01, 2026
Oil prices surged at the start of trading Sunday as escalating conflict in the Middle East rattled global energy markets.
The spike followed U.S. and Israeli attacks on Iran and retaliatory strikes on Israeli and American military installations around the Gulf, which injected fresh uncertainty into already tight supply conditions. Traders moved quickly to price in the risk that exports from Iran and other regional producers could slow sharply or be temporarily halted.
Attacks on two vessels transiting the Strait of Hormuz, the narrow chokepoint at the mouth of the Persian Gulf, have further raised concerns about safe passage for tankers carrying crude to world markets. Energy analysts warn that prolonged disruptions to this route, through which roughly a fifth of globally traded oil flows, could push crude and gasoline prices significantly higher in coming weeks.
In an effort to calm markets, OPEC+ members announced plans to boost crude output from April, though it remains unclear whether the additional barrels will offset mounting geopolitical risk.
