OIL prices have rocketed to US$114 per barrel, marking an increase of more than 20 per cent since Friday, as the ongoing conflict with Iran severely disrupts production and shipping across the Persian Gulf. Analysts warn that markets remain volatile as the war intensifies.
Brent crude, the international benchmark, was trading at US$101.19 shortly after the resumption of activity on the Chicago Mercantile Exchange, up 9.2 per cent from its Friday settlement of US$92.69.
West Texas Intermediate, the light, sweet crude produced in the United States, reached $107.06 per barrel, representing a 16.2 per cent rise from US$90.90 on Friday.
Both prices could fluctuate further as trading continues.
AP cited on Monday that the surge follows last week’s dramatic jumps, with U.S. crude rising 36 per cent and Brent crude 28 per cent.
The conflict, now in its second week, has entangled critical oil-producing nations and key transit routes, notably the Strait of Hormuz, through which approximately 15 million barrels of crude—around 20 per cent of the world’s oil—are shipped daily, according to independent research firm Rystad Energy.
Threats from Iranian missile and drone attacks have all but halted tanker traffic through the strait, which borders Iran and carries oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
Production cuts have followed as storage tanks fill due to constrained exports. Iraq, Kuwait, and the UAE have reduced output, while Iran, Israel, and the United States have targeted oil and gas facilities in the region, exacerbating concerns over supply.
“The war’s impact on the oil industry will spiral,” said Mohammad Bagher Qalibaf, the speaker of Iran’s parliament, warning that it could soon become harder to produce and sell oil.
Iran currently exports roughly 1.6 million barrels of oil per day, predominantly to China, which may need alternative sources if Iranian shipments are disrupted, potentially driving energy costs higher.
The last occasion U.S. crude futures traded above US$100 per barrel was on 30 June 2022, when prices reached US$105.76, while Brent last crossed the US$100 mark on 29 July 2022, peaking at US$104 per barrel.
Markets are now bracing for the broader economic impact. In the United States, the average price of regular gasoline reached US$3.45 per gallon on Sunday, an increase of 47 cents in a week, while diesel rose to US$4.60 per gallon, up 83 cents, according to the AAA motor club. Natural gas prices also climbed, rising about 11 per cent last week to US$3.19 per 1,000 cubic feet.
Financial analysts caution that sustained oil prices above US$100 per barrel could strain the global economy, increasing inflation and curbing consumer spending, particularly in the United States, the world’s largest energy consumer.
Over the weekend, Israel’s military struck oil depots in Tehran, along with four storage tankers and a petroleum transfer terminal, intensifying fears of prolonged disruption. - March 9, 2026
