Oil Prices Surge Above $80 as Middle East War Fears Shake Global Markets

Monday, March 2, 2026 – Global oil prices jumped sharply in Asian trading after fresh military strikes in the Middle East raised fears of supply disruptions. Investors reacted quickly to the rising tensions involving the United States, Israel, and Iran.

Brent Crude Jumps 13% in Early Trading

Futures for Brent crude surged by 13 percent, climbing above $82 per barrel from Friday’s closing price of $72. At the same time, West Texas Intermediate (WTI) rose nearly 10 percent, crossing $70 per barrel.

The rally began shortly after markets opened in Asia. Traders rushed to secure supplies as concerns grew over possible disruptions in the region. Brent had already gained ground last week before the latest strikes began on Saturday.

Strait of Hormuz Under Threat

The biggest concern for markets is the Strait of Hormuz, a key shipping route through which nearly 20 percent of the world’s oil supply passes. Reports suggest the waterway is mostly, but not fully, closed. Some Chinese and Iranian vessels are said to have managed passage.

Shipping companies have confirmed that several fleets are suspending operations along the route. Insurance costs for vessels have also increased sharply, making transport more expensive.

Amena Bakr, head of Middle East and OPEC+ research at Kpler, said oil prices could reach $90 if tensions continue. Analysts warn that prolonged disruption could remove between 8 to 10 million barrels per day from global supply.

Risk of Higher Inflation

Experts say oil-importing countries hold emergency reserves. Members of the OECD are required to maintain at least 90 days of oil stocks. However, analysts caution that reserves may not fully offset a long-term closure of the Strait of Hormuz.

Gas prices are also expected to rise. Qatar, a major exporter of liquefied natural gas, could face shipping challenges if instability spreads. Higher fuel and transport costs may push inflation upward across global markets.

Economic Impact and Political Pressure

Energy analysts note that rising oil prices could create economic pressure worldwide. The last time crude crossed $100 per barrel was at the start of the Ukraine war, which triggered global inflation.

Michelle Brouhard of Kpler described high oil prices as a political challenge for Donald Trump, who has promised lower energy costs. With US midterm elections approaching, sustained high prices could affect voters and businesses alike.

Economist Eric Dor from IESEG School of Management warned that short-term disruptions may have limited impact. However, if the situation continues for weeks, it could slow global economic growth and increase recession risks.

Markets remain volatile as investors closely monitor developments in the Middle East.