Oil prices jumped 7% to their highest levels in months on Monday, March 2, 2026, as Iran and Israel stepped up attacks in the Middle East.
The conflict resulted in damaging tankers and disrupting shipments from the key producing region.
Brent crude futures shot up to $82.37, the highest since January 2025, in the first futures trading after the United States and Israel launched strikes on Iran and killed its Supreme Leader Ali Khamenei on Saturday.
As of 0054 GMT, Brent futures were at $78.24 a barrel, up $5.37, or 7.37%.
U.S. West Texas Intermediate crude rose $4.66, or 6.95%, to $71.68 a barrel after touching $75.33 earlier, the loftiest since June 2025.
Israel launched a new wave of strikes on Tehran on Sunday and Iran responded with more missile barrages, a day after the killing of Supreme Leader Ali Khamenei pitched the Middle East and the global economy into deepening uncertainty.
The attacks exposed ships to collateral damage as missiles hit at least three tankers off the Gulf coast and killed one seafarer, shipping sources and officials told Reuters on Sunday.
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Iran has said it has closed navigation through the Strait of Hormuz, prompting Asian governments and refiners – key buyers – to assess oil stockpiles.
“With the retaliatory action now evolving to attacks on oil tankers in the Strait of Hormuz, the threat on oil supplies has substantially risen,” ANZ analyst Daniel Hynes said in a statement.
Citi analysts expect Brent to trade between $80 and $90 a barrel this week amid the ongoing conflict.
“Our baseline view is that the Iranian leadership changes, or that the regime changes sufficiently as to stop the war within 1-2 weeks, or the U.S. decides to de-escalate having seen a change in leadership and set back Iran’s missiles and nuclear program over the same time frame,” the analysts led by Max Layton said in a note.
Amid the conflict, OPEC+ agreed to a modest oil output boost of 206,000 barrels per day for April on Sunday.
Every OPEC+ producer is essentially producing at capacity except for Saudi Arabia, RBC Capital analyst Helima Croft said.
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