Oil prices rise on Iran crisis, Middle East supply disruptions

March 04, 2026 (MLN): Oil prices surged on Wednesday as intensified geopolitical tensions sent shockwaves through global energy markets.

Currently, Brent crude futures went up by $1.31, or 1.60%, to $82.69 per barrel, according to Mettis Global data.

West Texas Intermediate (WTI) crude futures increased by $0.93, or 1.25%, to $75.51 per barrel by [10:00 am] PST.

Iran has declared that it will allow only China to pass through the Strait of Hormuz , as an expression of gratitude for Beijing’s supportive stance toward Tehran during the war.

The strait has been closed to all other ships without exception, with a clear warning that any unauthorized crossing will be directly targeted by Iranian forces, as per Chinese media on X.

Israeli and U.S. forces carried out attacks across Iran on Tuesday, leading Iran to retaliate by targeting energy infrastructure in a region responsible for nearly one-third of the world’s oil supply.

Meanwhile, Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries (OPEC), has slashed production by almost 1.5m barrels per day roughly half of its output citing storage constraints and blocked export routes.

Iraq might be forced to halt its entire production of nearly 3m barrels per day if exports are not restored soon, as per Reuters reported. 

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