Oil prices rose late Sunday as U.S.-Iran tensions intensified, raising concerns about global energy supply disruptions.
Market Reaction
- Brent crude rose 0.5% to $112.80 per barrel.
- West Texas Intermediate (WTI) increased 0.7% to $98.89 per barrel.
Prices have surged from about $70 per barrel before the conflict escalated in late February.
Factors Driving the Surge
The increase is mainly due to concerns about the Strait of Hormuz, a key shipping route handling about 20% of global oil and liquefied natural gas supply.
- President Donald Trump warned the U.S. may strike Iranian power plants if the strait remains closed.
- Iran responded with threats targeting U.S. and Israeli infrastructure across the Middle East.
- Ongoing attacks and regional instability have increased supply risks.
Broader Economic Impact
The conflict is starting to affect the global economy, with prices nearing $4 per gallon.
- Disruptions are impacting oil as well as helium, pharmaceuticals, and fertilizers.
- Rising energy costs and tariffs are lowering the chances of near-term Federal Reserve rate cuts.
Outlook
Markets remain volatile as investors monitor potential escalation. Analysts warn that any disruption to the Strait of Hormuz could significantly impact global energy markets both short- and long-term.
Source: Tristan Anthony, Lauren Edmonds, and Huileng Tan, Business Insider
https://www.businessinsider.com/oil-prices-iran-war-trump-power-plants-hormuz-2026-3