Global oil markets soar on Middle East conflict fears
Brent crude touched a two-year high above $118 per barrel as traders priced in the risk of prolonged disruption to Gulf supply routes.
Economy — March 2, 2026
Global oil markets surged Monday as traders responded to the expanding conflict in the Middle East, with Brent crude briefly touching $118 a barrel—its highest level since early 2024—before settling at around $114.
The West Texas Intermediate benchmark also rose sharply, trading above $111 for the first time in nearly two years. Gasoline futures in the United States hit a record high, fanning fears of a return to sky-high pump prices.
Analysts cited three main risk factors: the possibility that the Strait of Hormuz—through which roughly 20% of global oil supply transits—could be disrupted by Iranian military action; the direct strikes on Iranian energy infrastructure; and the broader uncertainty about how long the conflict will last.
Saudi Aramco confirmed that its operations were unaffected but said it was monitoring the situation closely and could increase output from spare capacity if needed. The kingdom's crude production is currently at 10 million barrels per day.
The International Energy Agency said global strategic reserves were sufficient to cover any disruption of up to 90 days without significant market dislocation, and urged member countries to coordinate if a release of strategic reserves became necessary.
Economists warned that sustained oil prices above $100 would add approximately 0.5% to global inflation and subtract roughly 0.3% from world GDP growth over a 12-month period.
