one of its gravest shocks in decades following joint U.S. and Israeli military strikes on Iran.
The conflict has triggered immediate volatility and fears of a prolonged global energy crisis:
Price Surges: Brent crude jumped over 7% on Monday, March 2, 2026, briefly topping $82 a barrel, while U.S. crude rose nearly 4%. Analysts warn prices could spike to $100–$120 if the situation escalates further.
Strait of Hormuz Disruption: Major oil and gas traders have suspended shipments through the Strait of Hormuz. This vital waterway handles approximately 20% of the world's oil supply, and its effective closure by Iran's Revolutionary Guard has halted traffic for hundreds of vessels.
Military Escalation: President Donald Trump has suggested the military campaign could last about four weeks, stating strikes will continue until U.S. objectives are met.
OPEC+ Response: In an effort to stabilize the market, OPEC+ agreed to increase crude output by 206,000 barrels per day starting in April, though markets have largely ignored this due to the severity of the Hormuz disruption.
Retail Impact: Analysts predict U.S. average gasoline prices will break $3 a gallon as early as today, marking the first time in 2026 they have reached this level.