Oil Price Surge and the Strait of Hormuz Crisis

The escalating U.S.-Iran conflict has sent

shockwaves through energy markets. Following the U.S. and Israeli strikes starting February 28, 2026, Iran retaliated by targeting vessels and effectively blocking safe passage through the Strait of Hormuz. Shipping companies report that tanker traffic has come to a near standstill, with some vessels attacked and insurers withdrawing war-risk coverage for the Persian Gulf. This disruption threatens roughly one-fifth of the world's oil and a significant portion of LNG flows.

Brent crude, the global benchmark, jumped around 7-10% in early trading on March 2, 2026, reaching levels in the high $70s to low $80s per barrel (with peaks near $82 before slight pullbacks). WTI crude followed suit, rising over 6-8% to trade above $70-72 per barrel. Analysts warn that prolonged closures could push prices toward $100+ if the conflict widens or infrastructure is damaged further. Energy stocks and related sectors are seeing gains, but the risk of inflation from higher fuel costs is pressuring broader equities.

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