Crude oil prices surge past $114 per barrel as Iran war disrupts global supply

Global crude oil prices surged past $114 per barrel as the intensifying Iran war disrupted production and shipping routes in West Asia. Brent and WTI crude recorded sharp weekly gains amid fears of supply shortages.

Post Published By: Sona Saini

Updated : 9 March 2026, 10:34 AM IST

Crude Oil Jumps to Four-Year High Amid Escalating Iran Conflict

New Delhi: As the Iran war escalates, global crude oil prices have seen a sharp surge. On Monday, Brent crude oil surpassed $114 per barrel, the first time since 2022. This price represents a nearly 23 percent increase from Friday's closing price of $92.69. US crude oil, West Texas Intermediate (WTI), also reached nearly $114 per barrel, a nearly 25 percent increase from its previous closing price of $90.90.

War Increases Threat to Production and Supply

The escalating war in the Middle East has raised serious concerns about oil production and supply. Several key energy installations have been targeted in the ongoing conflict between Iran and Israel. Reports indicate that Israeli attacks sparked a fire at an oil depot in Tehran, while Bahrain has alleged that Iran attacked a vital water plant there.

Crude oil prices under pressure, trade tensions, and oversupply raise concerns

Tanker traffic affected in the Strait of Hormuz

The Strait of Hormuz has been the most significant oil transportation route in the oil market. This waterway is one of the world's most important oil transportation routes. According to research firm Rystad Energy, approximately 20 percent of the world's oil, or about 15 million barrels per day, passes through it. However, the threat of potential missile and drone attacks from Iran has virtually halted the movement of oil tankers.

Several countries have reduced production

Oil supplies from countries like Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, and the United Arab Emirates are being affected. Iraq, Kuwait, and the UAE have reduced production due to export disruptions as storage tanks are rapidly filling up. This has further increased supply uncertainty in the global market.

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Expensive oil could lead to inflation

Experts say that if oil prices remain above $100 per barrel for a prolonged period, it could have a serious impact on the global economy. Rising energy prices could accelerate inflation and reduce consumer spending. Gasoline prices in the United States have also risen sharply, reaching $3.45 per gallon.

Natural Gas and Stock Markets Also Affected

Along with oil, natural gas prices have also risen, reaching approximately $3.33 per thousand cubic feet. Meanwhile, growing uncertainty is putting pressure on global stock markets and raising concerns among investors. Experts believe that if the war continues for a long time, its impact on the energy market and the global economy could be even more profound.