Oil hits multi-year high on Middle East conflict

March 03, 2026 (MLN): Oil prices continued their upward trajectory for a third consecutive day on Tuesday, driven by escalating conflict between the U.S., Israel, and Iran.

Mounting threats to shipping through the strategic Strait of Hormuz have further heightened concerns over potential disruptions to global energy supplies.

Currently, Brent crude futures went up by $0.12, or 0.17%, to $71.88 per barrel, according to Mettis Global data.

West Texas Intermediate (WTI) crude futures increased by $1.35, or 1.90%, to $72.58 per barrel by [10:27 am] PST.

The benchmark surged to $82.37 on Monday, marked its highest level since January 2025, before trimming gains to settle 6.7% higher.

U.S. West Texas Intermediate (WTI) crude rose 74 cents, or 1%, to $71.97 per barrel, after briefly hitting its highest level since June 2025 in the previous session and closing up 6.3%.

The conflict intensified on Monday as Israeli airstrikes targeted Lebanon, prompting retaliatory Iranian attacks on energy infrastructure in Gulf countries and tankers navigating the Strait of Hormuz.

This strategic waterway typically handles crude shipments equivalent to about 20% of global demand, along with refined fuels to major Asian markets including China and India.

It also accounts for roughly 20% of the world’s liquefied natural gas transit.

Insurance companies have canceled coverage for vessels transiting the strait, forcing tankers and container ships to avoid the route.

Iranian state media reported that the Revolutionary Guards declared the Strait of Hormuz closed, warning that any vessel attempting to pass would be fired upon.

On Monday, Iranian authorities said a Honduran-flagged fuel tanker, Athe Nova, was set ablaze after being struck by drones.

Anticipated sustained pressure on oil prices in the coming days as geopolitical tensions continue. Bernstein raised its 2026 Brent price forecast from $65 to $80 per barrel, noting extreme scenarios could push prices to $120–$150 amid prolonged conflict.

Refined oil products are also facing upward pressure.

Saudi Arabia shut its largest domestic refinery on Monday following a drone strike, while U.S. ultra-low-sulfur diesel futures rose 3.1% to $2.991, hitting a two-year high.

Gasoline futures increased 1.1%, and European gasoil futures climbed 2.7% to $909.50 per metric ton after a previous 18% surge.

The combination of escalating regional conflict, refinery shutdowns, and Strait of Hormuz disruptions underscores a fragile global oil supply chain, keeping energy markets on high alert.

Copyright Mettis Link News