Oil prices soar after eight days of Middle East conflict

Saturday 07 March 2026 - 14:15

Oil prices have surged to levels not seen since 2023 following eight days of conflict in the Middle East. Investors are increasingly concerned as disruptions to oil flows from the Gulf region continue, fueled by tensions in the Strait of Hormuz.

The West Texas Intermediate (WTI) benchmark closed at $90.90 per barrel, up more than 12% in a single session and rising 35.6% over the week—a record since WTI futures began trading in 1983. Brent crude, the international reference, ended at $92.69, up over 8% on the day and nearly 28% for the week, following the initial Israeli-American strikes on Iran.

Analysts warn that the spike in oil prices—already exceeding $30 per barrel since the start of the year—could have long-term consequences, including the risk of a global economic slowdown. “This situation is starting to take dramatic proportions,” said Ole R. Hvalbye, an analyst at SEB.

The conflict has effectively paralyzed traffic through the Strait of Hormuz, through which approximately 20% of the world’s oil passes. “The market is moving from a purely geopolitical risk assessment to factoring in tangible operational disruptions,” note JPMorgan economists.

Several Gulf countries have already reduced output. Iraq cut supplies by about 1.5 million barrels per day, while Kuwait is nearing storage capacity limits, forcing refinery closures. Analysts warn that even if exports resume, there will be a lag before production can return to normal levels.

To prevent shortages, China has asked major refiners to halt diesel and gasoline exports, and the United States has authorized the delivery of sanctioned Russian oil to India for one month. Meanwhile, the U.S. Navy is prepared to escort commercial vessels through the Strait of Hormuz “as soon as it is feasible,” according to Energy Secretary Chris Wright.

Despite these measures, market analysts emphasize that full recovery to pre-conflict traffic levels is unlikely in the near term, and supply tensions may continue to drive price volatility.