Brent crude climbed 12.2% to $104.05 a barrel when Asian markets opened on March 8, crossing $100 for the first time since Russia's invasion of Ukraine in 2022. Prices subsequently pushed as high as $110, a level not seen since the pandemic era, according to the New York Times.
The International Energy Agency described the disruption as the largest ever recorded in the oil market, driven by the ongoing US-Israel military campaign against Iran. The conflict is removing an estimated 20 million barrels per day from global supply, according to the Guardian, as Iranian production and regional shipping come under sustained pressure.
Iran escalated its response by laying mines in the Strait of Hormuz, through which roughly a fifth of the world's oil passes, prompting a US military counter-response. Tanker attacks in the Persian Gulf have also intensified, with multiple vessels struck in recent days. The combination has rendered the emergency release of strategic petroleum reserves ineffective in calming prices: a coordinated G7 reserve drawdown failed to prevent further gains, with oil continuing to climb despite the intervention.
US stock futures sold off sharply, with Dow futures falling 800 points at the start of the week's trading. The equity declines reflected investor concern about the broader economic consequences of sustained triple-digit oil prices, with downstream industries including airlines and road transport already seeing cost pressures feed through to consumers. Gas prices at the pump have risen sharply in the US, and airfares are following.
President Trump, whose administration launched the military campaign, has characterised the oil price spike as a "small price to pay" for defeating Iran. Critics, including commentary in CNN and the New York Times, have argued his policy options to contain the price shock are limited. The political dimension is sharpening: CNBC has flagged that affordability could become a defining issue in the 2026 midterm elections if prices remain elevated.
