TLDR
- Both Brent crude and WTI reached $119.50 per barrel early Monday, marking their highest prices since the middle of 2022.
- Israeli forces targeted Iranian oil infrastructure during weekend operations, while Tehran launched counterstrikes against Gulf state facilities.
- Tehran has effectively shut down the Strait of Hormuz, a critical passage for approximately 20% of global oil transport.
- G7 financial leaders convene Monday to evaluate coordinated emergency petroleum stockpile releases.
- American gasoline futures jumped more than 10%, approaching four-year peak levels above $3.00 per gallon.
Crude oil markets experienced dramatic volatility Monday following unprecedented Israeli military operations targeting Iranian petroleum infrastructure—the first such strikes since hostilities commenced in early March. The assault drove both Brent crude and West Texas Intermediate contracts to intraday peaks of $119.50 per barrel, representing price levels unseen since the middle of 2022.
BREAKING: US oil prices are currently attempting one of their biggest reversals in history.
At 10:30 PM ET, US oil prices were up as much as +30% on the day.
Then, FT reported that G7 countries are considering releasing 400 million barrels of crude oil from reserves.
Less than… pic.twitter.com/G1uRHvkFxX
— The Kobeissi Letter (@KobeissiLetter) March 9, 2026
As trading progressed into midday sessions, Brent settled around $106.80 per barrel while WTI traded at $102.79, retreating from the overnight surge. The decline followed reporting by the Financial Times indicating that G7 finance ministers planned emergency discussions Monday regarding potential emergency oil stockpile releases.
The scheduled discussions are anticipated to include coordination efforts with the International Energy Agency. At least three G7 nations, the United States among them, have already publicly indicated willingness to participate in a collective reserve deployment.
Oil markets have experienced gains exceeding 25% since the Iran crisis erupted in early March. The weekend’s military escalation sent prices surging higher as Sunday evening trading commenced.
Israeli military forces targeted fuel storage complexes in Tehran on Saturday. Tehran retaliated by deploying drones against a Bahraini oil refinery, the Wall Street Journal reported.
Strait of Hormuz Now Effectively Blocked
Iranian forces have also conducted attacks on commercial vessels transiting the Strait of Hormuz. This critical waterway facilitates approximately 20% of worldwide oil consumption, and current vessel traffic has declined to minimal levels.
OCBC analysts noted that “tail risks from a sustained Hormuz stoppage remain in play,” drawing comparisons to the magnitude of the 2022 Russia-Ukraine energy disruption.
Deutsche Bank strategist Jim Reid acknowledged the potential impact of G7 reserve releases but emphasized that “the duration and intensity of the conflict will still be far and away the most important driver.”
Both Kuwait and the United Arab Emirates announced intentions to reduce oil production over the weekend, following similar output cuts from Iraq the previous week. Storage capacity limitations linked to supply chain disruptions are compelling several producers to curtail operations.
In an unusual development, Saudi Arabia began offering crude supplies on spot markets, suggesting the kingdom is attempting to address supply shortfalls created by the regional conflict.
Trump Warns Prices Will Stay High Short-Term
President Donald Trump addressed the oil price spike Sunday, acknowledging that prices would likely maintain elevated levels in the near term but predicted they would “drop rapidly” following resolution of the Iran confrontation.
Trump had earlier minimized concerns about rising domestic gasoline costs, informing Reuters that military operations against Iran remained his administration’s primary focus.
American gasoline futures experienced gains exceeding 10% Monday, climbing beyond $3.00 per gallon and approaching their highest levels since the middle of 2022.
Jefferies economist Mohit Kumar characterized the targeting of Iranian oil infrastructure as evidence of “a shift in war strategy,” cautioning that attacks on critical infrastructure escalate both humanitarian and economic consequences.
Under a moderately severe scenario where limited shipping resumes with military protection, OCBC analysts project Brent crude could sustain prices near $100 per barrel through the middle of the year.
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