Mar 25, 2026 - Oil prices surged above $100 per barrel on Wednesday as the ongoing conflict between Iran, Israel and the United States continued to disrupt supplies through the Strait of Hormuz.
Brent crude, the global benchmark, climbed as high as $103.61 per barrel during trading, according to market data. West Texas Intermediate crude also rose sharply, trading near $94 per barrel. The increase marked the first sustained move above $100 since 2022.
The price surge followed repeated Iranian attacks on vessels in the Strait of Hormuz, through which about one-fifth of global oil and liquefied natural gas supplies normally pass. Traffic in the narrow waterway has slowed significantly since early March, with reports of attacks on multiple tankers and reduced shipments from Gulf producers.
The conflict began intensifying on Feb. 28 with U.S. and Israeli airstrikes on Iranian targets, which killed Iran's Supreme Leader Ali Khamenei and damaged military and energy infrastructure. Iran responded with missile barrages and actions targeting shipping routes. Several oil tankers were reported hit or forced to divert, leading to force majeure declarations by some exporters and a sharp drop in daily transits.
Major producers in the region, including Saudi Arabia and other Gulf states, maintained output levels but faced higher insurance and shipping costs. Preliminary data from shipping trackers indicated dozens of vessels delayed or rerouted in recent weeks. Global inventories have drawn down as buyers sought alternative supplies, pushing spot prices higher.
The price increases have affected fuel costs worldwide. In the United States, average gasoline prices rose above $3.50 per gallon in many regions, according to industry reports. Airlines and shipping companies reported higher operating expenses, with some passing costs to consumers through surcharges.
Energy markets reacted to daily developments in the conflict. On Tuesday, Brent settled just below $100 before climbing again amid reports of new incidents near the strait. Trading volumes increased as hedge funds and investors adjusted positions.
The Organization of the Petroleum Exporting Countries and its allies continued to monitor the situation but made no immediate changes to production quotas. The International Energy Agency noted the potential for further volatility if disruptions persisted.
As of Wednesday afternoon, oil prices remained above $100 per barrel with active trading. No immediate resolution to the shipping disruptions was reported, and market participants continued to watch for updates from the region.