Oil prices reach highest level in months amid Iran conflict

2026-03-02 - 04:33

Oil prices recorded an increase of 7% on Monday, reaching their highest levels in months, as tensions in the Middle East heightened following the US-Israel attack on Iran. The increase came after Israel and the US launched strikes on Iran, including an assault that resulted in the death of Iran’s Supreme Leader, Ali Khamenei, on Saturday. Brent crude futures soared to $82.37 per barrel, marking the highest price since January 2025. By 0054 GMT, Brent was trading at $78.24, up by $5.37, or 7.37%. Similarly, U.S. West Texas Intermediate crude climbed $4.66, or 6.95%, to $71.68, briefly hitting $75.33, the highest since June 2025. The conflict has disrupted shipping in the region, with missiles damaging at least three tankers off the Gulf coast and causing the death of one seafarer, according to shipping sources. Analysts predict that oil prices could see further hike in coming weeks in view of prevailing situation in the Middle East continues to deteriorate. Concerns about potential disruptions to key oil routes, particularly the Strait of Hormuz, have contributed to the price spike. Analysts forecast that Brent crude could remain between $80 and $100 per barrel in the coming week. Goldman Sachs added that the current crisis has introduced an $18 per barrel risk premium.