New York, March 03, 2026 (Udaipur Kiran) — Global oil prices rose sharply on Tuesday, settling nearly 5 percent higher and reaching their highest level since January 2025 as tensions in the Middle East intensified and disrupted energy shipments.
According to a Reuters report, Brent crude futures climbed $3.66, or 4.7 percent, to settle at $81.40 per barrel. U.S. West Texas Intermediate crude also increased by $3.33, or 4.7 percent, settling at $74.56 per barrel.
The surge in prices came as U.S. and Israeli forces carried out attacks on targets across Iran, while Iran responded with retaliatory strikes in the Gulf region. The conflict has also spread to Lebanon, raising concerns over a prolonged crisis that could impact global energy supplies.
Brent crude has already risen about 12 percent since the conflict began on Saturday.
The situation has also affected oil production and transportation in the region. Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries after Saudi Arabia, has cut production by nearly 1.5 million barrels per day. Reports indicate that the cuts could increase further as the country faces storage constraints due to difficulties in exporting crude.
Iran has also targeted regional energy infrastructure and tankers in the Strait of Hormuz, a critical route through which about one-fifth of the world’s oil and liquefied natural gas shipments normally pass.
Shipping activity through the strait has slowed significantly, as several tankers and container ships are avoiding the route after insurers cancelled coverage for vessels operating in the area. Shipping rates for oil and gas cargoes have also risen sharply.
Analysts at Standard Chartered said in a note that Iran’s retaliation appears broader than its previous actions and has created multiple regional flashpoints that pose a risk to energy supply.
U.S. President Donald Trump said that U.S. and Israeli air attacks could last four to five weeks, though they might end earlier. He also said the United States was considering providing insurance support for oil tankers.
During the trading session, Brent crude touched a high of $85.12 per barrel, its highest level since July 2024. Prices later eased after Trump said many Iranian naval and air targets had been destroyed.
The ongoing crisis has also prompted several countries to look for alternative energy supplies. India and Indonesia said they were seeking other sources, while some refineries in China have shut down or advanced maintenance plans.
In addition, Qatar has stopped liquefied natural gas production, Israel has halted output at some gas fields, and Saudi Arabia has shut its largest refinery.
Saudi oil company Aramco is also attempting to redirect some crude exports to the Red Sea to bypass the Strait of Hormuz, where the threat of attacks has slowed shipping operations.
In the United States, diesel futures jumped about 10 percent to their highest level since October 2023, while gasoline futures rose nearly 4 percent to $2.46 per gallon, the highest since July 2024.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
