Oil Prices Before the Conflict
Before the escalation of conflict in Iran, oil prices were relatively stable. However, the situation changed dramatically following the onset of hostilities on February 28, 2026, which has since disrupted oil production and transportation in the region.
Recent Developments
On March 9, 2026, Brent crude prices briefly surged to $119.50 per barrel, while West Texas Intermediate soared to $119.48 per barrel. This marks a significant increase, with Brent and U.S. crude now 36% and 42% more expensive, respectively, compared to prices before the conflict began.
Impact on Global Energy Supplies
The Strait of Hormuz, a crucial shipping route, typically sees about 15 million barrels of crude oil shipped daily, accounting for 20% of the world’s oil supply. The ongoing conflict has raised concerns about the security of these shipments.
Bahrain’s national oil company declared force majeure for its shipments after an Iranian attack set its refinery complex ablaze, further exacerbating supply issues.
Effects on Consumers
The rise in oil prices has had immediate repercussions for consumers. The average U.S. price of a gallon of regular gasoline rose to $3.48 on March 9, 2026, an increase of nearly 50 cents from the previous week. Diesel prices also saw a significant jump, selling for about $4.66 a gallon, a weekly increase of more than 80 cents.
Expert Perspectives
Experts are weighing in on the situation, with French Finance Minister Roland Lescure stating, “We’re not there yet,” suggesting that the situation may continue to evolve. Chinese Foreign Ministry spokesman Guo Jiakun emphasized that “all parties have their responsibility to ensure stable and smooth energy supplies,” highlighting the global implications of the conflict.
Le Van Tu remarked, “Higher oil and gas prices will affect everyone and our economy,” indicating the widespread impact of rising energy costs. June Goh warned, “Do not discount the severity of this escalation,” underscoring the potential for further disruptions.
Uncertainties Ahead
Details remain unconfirmed regarding the long-term impact of the Iran war on oil prices and the potential for G7 countries to release oil reserves. As the conflict continues, the global energy landscape remains precarious.
