Oil prices surge above $110 and shares slide over Iran war

Major disruption to energy supplies threatens to push up prices for consumers and businesses around the world.

Crude oil prices surged past $114 a barrel on Monday, the highest since 2022, as the ongoing Iran war disrupted oil production and shipping routes in the Middle East. Brent crude rose 23% and West Texas Intermediate 25% from Friday's close. The conflict, which began after Israel and the U.S. attacked Iran on March 1, has escalated with attacks targeting oil infrastructure—including Israeli strikes on depots in Tehran and Iranian missile threats that have halted tanker traffic through the Strait of Hormuz, a key passage for 20% of the world’s oil. Bahrain also accused Iran of hitting a vital desalination plant. Countries like Iraq, Kuwait, and the UAE have reduced production due to blocked exports. The conflict has raised fears of global inflation and economic slowdown. Gasoline and diesel prices have also spiked in the U.S., and global markets have responded with sharp declines—Tokyo's Nikkei fell over 7%, and U.S. futures indicated significant losses. Energy Secretary Chris Wright remains optimistic about fuel prices normalizing within weeks. Meanwhile, natural gas prices have also risen, albeit at a slower pace. The persistence of high oil prices could pose severe risks to the global economy.

Crude oil prices surged past $100 per barrel for the first time since 2022 due to the ongoing war involving Iran, which has significantly disrupted oil production and shipping in the Middle East. Brent crude rose to $107.97 and West Texas Intermediate to $106.22, both seeing sharp increases of over 16% from the previous trading day. The conflict, now in its second week, threatens critical oil infrastructure and shipping routes, particularly the Strait of Hormuz, through which about 20% of the world's oil passes daily. Iranian missile threats have effectively halted tanker movements, while strikes by Iran, Israel, and the U.S. on oil facilities have worsened supply uncertainties. Several Gulf countries, including Iraq, Kuwait, and the UAE, have reduced production due to storage limitations. The surge in prices has impacted global markets and consumer costs, with U.S. gasoline reaching $3.45 and diesel $4.60 per gallon. Energy Secretary Chris Wright expects gas prices to drop below $3 soon, projecting a short-term disruption. The crisis has also led to declines in U.S. stock futures and concerns about inflation and economic slowdown. Natural gas prices rose modestly to $3.33 per 1,000 cubic feet.

On Monday, March 9, 2026, Japan's Nikkei 225 index plummeted over 7% to 51,694.16 amid a sharp surge in oil prices, which climbed above $114 per barrel due to disruptions caused by a war in the Middle East. This conflict has disrupted oil supplies from the Persian Gulf, escalating concerns for oil-importing economies across Asia. Additional major indices also declined, with South Korea’s Kospi falling by 7.4%, and markets in Australia, New Zealand, Hong Kong, and China all registering significant losses. Meanwhile, U.S. futures and global oil benchmarks soared over 20% from the previous week, reflecting escalating supply concerns. Crude prices are now at their highest since the 2022 Russia-Ukraine war, and experts warn prolonged price hikes could severely hinder global economic recovery. The rising energy costs, coupled with ongoing high tariffs from U.S. trade policies and weak U.S. job data, further complicate economic stability. In response to the crisis, Southeast Asian officials are meeting in Manila to address the rising energy costs. Investors are increasingly turning to the U.S. dollar as a safe haven, pushing it higher against major currencies like the Japanese yen and the euro.

As of March 9, 2026, oil prices surged past $100 per barrel for the first time since 2022 due to the escalating war involving Iran, significantly disrupting global oil supplies. Brent crude, the global benchmark, opened at $101.81 and later rose above $108, while U.S. WTI crude was at $101.56. The conflict has impacted about 20% of the global oil supply over nine days, according to Rapidan Energy Group, pushing prices up over 30% since strikes on Iran began. This spike has started to affect U.S. consumers, particularly at the gas pump, with the narrow Strait of Hormuz becoming a high-risk zone that is deterring tanker traffic. Former President Trump downplayed the price increases, declaring on Truth Social that high oil prices are a small price to pay for global safety. The price surge mirrors past spikes, notably during Russia's 2022 invasion of Ukraine. The situation presents challenges for the U.S. administration, which has limited tools to curtail rising costs. Analysts warn that if the conflict continues, Brent prices could rise to $120, marking a sharp reversal from previously strong supply levels.

Major U.S. stock indexes stumbled further on Thursday as the Iran conflict boosted oil prices to a nearly two-year high amid concerns about the war’s potential effects on inflation and the economy. Oil prices have rallied to a nearly two-year high since the U.S. attacked Iran over the weekend. The Dow Jones Industrial Average slid by 1,089 points, or 2.2%, as of Thursday afternoon, while the S&P 500 and tech-driven Nasdaq dropped by 1.3% and 1.1%, respectively. West Texas Intermediate, the U.S. oil benchmark, surged 9% to above $81, while the international benchmark Brent Crude rose 5% to roughly $85.45, the highest level for either index since July 2024. A surge in oil futures followed a report from Iranian state media that claimed Iran struck an oil tanker with a missile and the British Navy reported an explosion on a tanker in Iraqi waters. Caterpillar (down 4.6%), Walmart (4.3%), Goldman Sachs (3.9%) and Boeing (3.3%) headlined losses across the Dow, while AMD (2.5%), Apple (1.5%), Nvidia (1.5%), Alphabet (1.4%) and Tesla (0.9%) pulled down the Nasdaq.

Amid escalating conflict involving Iran, global oil and gas prices have surged due to the strategic vulnerability of the Strait of Hormuz, a crucial chokepoint through which roughly 20% of global oil passes.

Following the death of Iran’s Supreme Leader Ayatollah Ali Khamenei during the initial stages of a U.S.-Israel conflict, his son, Ayatollah Mojtaba Khamenei, has been named his successor.

On March 5, 2026, U.S. stock markets dropped sharply as oil prices surged to their highest levels since the summer of 2024, primarily due to the ongoing war with Iran.

Oil prices jumped sharply on Monday as the war between the US-Israeli alliance and Iran intensified, raising fears of major disruptions to global energy supplies.

Oil prices crossed $110 per barrel for the first time since 2022, with futures on Brent crude and WTI jumping more than 25% amid fears of a prolonged Middle East conflict and disruptions in the Strait of Hormuz.

Global oil prices have risen after Iran continued to launch strikes across the Middle East in response to ongoing attacks by the US and Israel, with Brent crude jumping by 10% to over $82 a barrel.