2nd March 2026
Oil prices have surged sharply today, 2 March 2026, following a major escalation of conflict in the Middle East. Prices initially rocketed by as much as 13% during early Asian trade as markets reacted to unprecedented military strikes by the U.S.
While some gains have since been pared, benchmark prices remain significantly elevated.
Brent Crude reached an intraday high of over $82 per barrel, its highest since January 2025, before moderating to approximately $77-$79.
WTI (West Texas Intermediate) surged above $75 per barrel earlier today and is currently trading around $71-$73, up more than 6%.
Key Market Drivers
Strait of Hormuz Disruption: The primary driver is the effective closure of the Strait of Hormuz, a critical chokepoint through which roughly 20% of global oil shipments pass. Shipping companies have largely suspended traffic through the waterway due to reports of missile attacks on tankers.
Geopolitical Escalation: Strikes on Iran, including the reported killing of Supreme Leader Ayatollah Ali Khamenei, have heightened fears of a broader regional war. Iran has retaliated with missile barrages at U.S. bases in neighbouring countries.
OPEC+ Response: On Sunday, OPEC+ agreed to increase production by 206,000 barrels per day starting in April to cushion the shock, though analysts believe this may not be sufficient if supply remains blocked.
Price Outlook: Analysts warn that if the conflict is prolonged or targets oil infrastructure directly, prices could breach $100 per barrel. Severe scenarios involving extended supply disruptions could even see prices reach $140 per barrel.
This report at 8.08am. Change is happening fast.