Crude oil rockets higher amid Middle East war fears

March 02, 2026 (MLN): Global oil prices surged sharply after escalating military tensions between the United States and Iran rattled energy markets, fueling fears of a significant supply disruption in the Middle East.

U.S. crude climbed more than 8%, gaining $5.55 to settle at $72.57 per barrel.

Meanwhile, global benchmark Brent Crude jumped around 9%, rising $6.54 to $79.41 per barrel, showing heightened concerns over the stability of global oil flows, according to CNBC.

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 $3.98, or 5.94%, to $71.00 per barrel by [9:33 am] PST.

The geopolitical shockwaves reverberated across global financial markets, triggering sharp moves in commodities and equities.

Crude oil recorded its biggest single-day gain in four years, emphasizing the severity of supply disruption fears.

Safe-haven demand also surged, pushing gold prices up 2.5% to $5,400 per ounce.

In Asia, equity markets came under pressure, with Japanese stocks falling 1.9% and South Korean shares declining 2% amid heightened regional risk aversion.

However, several international shipping lines have scaled back or rerouted Middle East operations due to rising security concerns, further intensifying worries over energy supply chain disruptions.

The spike follows a wave of coordinated airstrikes reportedly carried out by the U.S. and Israel against Iranian targets, intensifying geopolitical uncertainty in the region.

The situation has raised serious questions about leadership stability in Tehran and the potential impact on oil production from Iran, the fourth-largest producer in OPEC.

Energy markets are closely watching developments around the Strait of Hormuz, a critical artery for global oil trade.

The narrow waterway handles more than 14m barrels per day in 2025 roughly one-third of total global seaborne crude exports, according to industry data.

A significant portion of these shipments is destined for major Asian economies, including China, India, Japan, and South Korea.

Shipping activity through the Strait has reportedly slowed dramatically as tanker operators adopt precautionary measures amid rising security risks.

Energy consulting firms indicate that vessels are hesitating to transit the corridor, effectively halting traffic and tightening supply expectations.

The trajectory of oil prices in the coming days will depend largely on two factors: the speed at which tanker traffic resumes and the scale of any retaliatory measures from Iran.

A prolonged disruption could amplify supply shortages and push prices substantially higher.

Several global banks have warned that crude prices could extend their rally if tensions escalate further.

Beyond transit concerns, Iran’s domestic oil production is also under scrutiny. The country currently produces approximately 3.3m barrels per day.

Any sustained loss of Iranian output, combined with restricted flows through the Strait of Hormuz, would significantly tighten global supply at a time when demand remains steady.

For now, oil markets remain highly sensitive to geopolitical headlines, with volatility expected to persist until clearer signals emerge regarding de-escalation or further military action in the region.

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