Global Oil Prices Surge Above $100 as Middle East Tensions Escalate

At the start of the week’s trading session, both major crude benchmarks — Brent and West Texas Intermediate (WTI) — experienced sharp gains. Brent crude climbed 25% to $116.3 per barrel, while U.S. WTI crude surged 28% to $116.4 per barrel. Over the past week alone, both benchmarks have risen by nearly 30%, marking their strongest rally since mid-2022.

This surge pushed oil prices to their highest level since July 2022, when Brent crude briefly exceeded $120 per barrel.

The spike in oil prices comes amid significant political developments in Iran. Iranian authorities recently announced the selection of Mojtaba Khamenei, son of the late Supreme Leader Ali Khamenei, as the country’s next Supreme Leader. Analysts say the move signals the continued dominance of hardline leadership within Iran’s political system.

Meanwhile, military tensions in the region continue to intensify. On March 8, the Israeli military announced that it had launched strikes targeting Iranian commanders in Beirut, Lebanon, expanding its military operations into the city’s central districts after days of airstrikes that reportedly killed nearly 400 people.

Israel had previously warned that it would eliminate any successor to Iran’s Supreme Leader. At the same time, U.S. President Donald Trump stated that the conflict would only end once Iran’s current leadership structure was dismantled.

Late on March 7, Israeli forces also conducted their first strikes on oil facilities in Tehran, claiming that the sites were supplying fuel to multiple entities, including Iranian military units.

The escalating conflict has also disrupted energy shipments through the Strait of Hormuz, one of the world’s most critical oil transport routes, for more than a week.

Although Saudi Arabia — the world’s largest oil exporter — has increased shipments via the Red Sea, the additional supply has not been sufficient to offset the disruption caused by the blockage of the Hormuz route.

Energy analysts warn that even if the conflict ends soon, global consumers and businesses may still face elevated fuel prices for weeks or even months. Damaged infrastructure, supply chain disruptions, and increased transportation risks could continue to impact the global energy market.