Oil Prices Surge Amid Hormuz Tensions and Iran-US Conflict

Mar 5, 2026

69 min

Mar 5, 2026 02:31

Amid tanker squeeze in Hormuz, oil prices spike as Iran–US war chokes global supply, markets on edge

## Rising Oil Prices

Oil prices have surged as tensions escalate in the Strait of Hormuz due to a conflict involving the US, Israel, and Iran. The situation has led to significant disruptions in tanker traffic, causing a spike in global crude prices.

## Market Reactions

West Texas Intermediate (WTI) crude is trading at approximately $76.56, while Brent crude is near $83.19. Both have seen substantial gains, with WTI up 2.54% and Brent up 2.20% in recent sessions. Over the past year, these benchmarks have increased by 15.59% and 20.08%, respectively.

## Geopolitical Impact

The conflict has resulted in US and allied strikes on Iranian targets, prompting Iranian retaliation. This has affected the flow of oil through the Strait of Hormuz, a critical passage for global oil supply, leading to increased insurance costs for tankers and reduced exports from major producers like Iraq.

## Risk and Volatility

The geopolitical tensions have introduced a risk premium in oil prices, with potential supply disruptions causing volatility in energy markets. Analysts warn that a prolonged blockade could push prices even higher, possibly reaching $100 to $150 per barrel.

## Diplomatic Efforts

Despite the ongoing conflict, there are early indications of diplomatic efforts between Iran and US intermediaries, which have temporarily stabilized prices. However, the future trajectory of oil prices will largely depend on the conflict's duration and any diplomatic resolutions.

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