Global oil prices surged to their highest levels since 2022 as the war involving Iran, the United States, and Israel continued to shake energy markets.
Benchmark Brent Crude briefly climbed to $119.50 per barrel, while West Texas Intermediate (WTI) reached $119.48, marking one of the biggest single-day price jumps ever recorded.
By mid-morning trading in London, Brent was still up sharply, gaining about 14% to $105.71, while WTI rose 13% to around $103.06.
A major driver of the price spike is the near shutdown of the Strait of Hormuz, the critical waterway between Iran and Oman through which roughly one-fifth of the world’s oil and liquefied natural gas normally flows.
The disruption has triggered panic in energy markets as traders fear prolonged supply shortages and rising risks to oil shipments.
Some major producers are also cutting output. Production from key oilfields in Iraq has reportedly fallen by about 70%, as storage capacity has reached its limits.
Adding to market volatility, Iran named Mojtaba Khamenei as its new supreme leader following the death of his father Ali Khamenei.
The move signals that hardline leadership remains firmly in power in Tehran as the conflict continues.
The surge in oil prices is already affecting fuel markets worldwide. U.S. gasoline futures climbed to their highest level since 2022, reaching about $3.22 per gallon.
Despite the increase, Donald Trump, the President of the United States, has said the war’s impact on American consumers will remain limited ahead of the upcoming mid-term elections.
Governments may release emergency reserves to stabilize markets.
Chuck Schumer, leader of the Democrats in the United States Senate, has urged the administration to release oil from the U.S. Strategic Petroleum Reserve.
Meanwhile, officials from the Group of Seven (G7) are expected to discuss coordinated measures to counter the supply shock.
Even if the conflict ends soon, analysts warn that damaged energy infrastructure, disrupted shipping routes, and higher security risks could keep oil prices elevated for weeks or even months.
For consumers and businesses worldwide, that likely means higher fuel, transportation, and energy costs in the near term.
