Global oil prices surged sharply on Monday and remained elevated on Tuesday as geopolitical tensions in the Middle East triggered fears of supply disruptions across one of the world’s most critical energy corridors. Traders reacted quickly to the escalating conflict involving Iran, pushing crude prices to their highest levels in months before markets stabilised slightly in early Tuesday trading.
Monday’s spike driven by supply fears
Oil markets opened the week with a dramatic surge. The global benchmark Brent crude jumped nearly 7% during Monday’s trading session and briefly traded above $82 per barrel, marking the largest single-day gain in several months. The US benchmark West Texas Intermediate (WTI) also climbed strongly, rising above $75 per barrel before settling lower later in the day.
The sharp move was triggered by escalating military confrontation between Iran, the United States and Israel, which raised concerns about disruptions to oil production and shipping routes across the Persian Gulf. Energy traders focused particularly on the Strait of Hormuz, through which roughly 20% of global oil supplies normally pass.
As the conflict intensified, shipping traffic through the strait dropped sharply and several tankers halted operations in the region. Markets immediately priced in the risk that oil exports from the Gulf could be delayed or partially blocked, pushing energy prices higher across global exchanges.
By the end of Monday’s session, Brent crude had pulled back from its intraday peak but still closed around $77–$78 per barrel, representing a gain of roughly 6–7% for the day. WTI finished near $71 per barrel, also posting a strong daily increase.
Tuesday trading shows stabilisation but continued volatility
Early trading on Tuesday saw oil prices remain elevated, although markets stabilised after the previous day’s surge. Brent crude futures traded around $79–$80 per barrel, while WTI hovered near $72 per barrel as traders assessed whether supply disruptions would persist.
Energy markets remained highly sensitive to developments in the region. Analysts noted that any prolonged disruption to Gulf shipping or further attacks on energy infrastructure could quickly push prices significantly higher.
Several economists warned that a deeper conflict could push oil prices toward $100 per barrel, a level that would likely have major implications for inflation and global economic growth.
Energy markets react faster than equities
Commodity markets often react more rapidly than stock markets during geopolitical crises because supply shocks can immediately affect physical trade flows. Oil traders therefore responded swiftly to the prospect of reduced exports from major producers such as Saudi Arabia, Kuwait, Iraq and Iran.
At the same time, natural gas markets also experienced sharp movements. European and Asian gas prices rose dramatically during Monday’s session as traders priced in potential disruptions to LNG exports from Qatar and other Gulf producers.
Outlook: markets watch the Strait of Hormuz
For now, oil markets remain in a state of heightened alert. The key variable will be whether shipping through the Strait of Hormuz can resume normally or whether the conflict escalates further.
If tanker traffic remains restricted or regional infrastructure is targeted, analysts warn that oil markets could experience additional price spikes in the coming days. Conversely, signs of de-escalation could quickly ease supply concerns and stabilise prices.
With global energy demand still strong and inventories relatively tight, traders are likely to remain highly sensitive to geopolitical headlines throughout the week.
Newshub Editorial in Global Markets – March 3, 2026
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