Categories: Energy

Oil prices rise over US-Israel conflict with Iran

Oil prices rose for a third day on ​Tuesday, March 3, 2026, as the widening United States-Israeli conflict with Iran and threats to shipping through the Strait of Hormuz ‌heightened fears of supply disruptions from the key Middle East producing region.

Brent crude futures were at $79.44 a barrel, up $1.70, or 2.2%, by 0400 GMT.

On Monday, the contract surged to as high as $82.37, its highest since January 2025, though it pared those gains to settle 6.7% higher.

U.S. West Texas ​Intermediate crude jumped $1.17, or 1.6%, to $72.40 a barrel. In the previous session, the contract initially climbed to its highest ​since June 2025 before sliding back to still settle up 6.3%.

“With no quick de-escalation in ⁠sight, the Strait of Hormuz effectively closed and Iran showing a willingness to target energy infrastructure in the region, upside ​risks remain and they grow the longer the conflict drags on,” IG market analyst, Tony Sycamore, said in a note.

The ​U.S. and Israeli air war against Iran widened on Monday with Israel attacking Lebanon and Iran responding with strikes against energy infrastructure in Gulf countries and against tankers in the Strait of Hormuz.

Tankers and container ships are also avoiding the waterway as insurers have cancelled their coverage for vessels, while global ​oil and gas shipping rates have soared.

Concerns about transiting the waterway increased after Iranian media reported on Monday that a senior Iranian Revolutionary ​Guards official said the Strait of Hormuz is closed and warned Iran will fire on any ship trying to pass.

Trump: US acted on last, best chance to hit Iran

About 20% of the world’s oil and gas ‌pass ⁠through the Strait of Hormuz.

ING analysts told Reuters: “The market continues to digest the risk of escalation in the Middle East.

“While there are concerns about oil flows through the Strait of Hormuz, a greater risk to the market would be Iran targeting additional energy infrastructure in the region. This could lead to more prolonged outages.”

Israeli Prime Minister ​Benjamin Netanyahu said on Monday that ​the U.S. and Israel’s ⁠war against Iran may take “some time” but it will not take years.

Analysts expect oil prices to remain elevated over the coming days while markets focus on the impact of escalating Middle ​East conflict.

The Star

Segun Ojo

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