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Global oil prices surged past $114 per barrel on March 9, 2026, the highest level since 2022, as the escalating war involving Iran threatened oil production and shipping routes across West Asia, raising fears of a prolonged global energy supply disruption.
The price of Brent crude, the international benchmark, jumped above $114 after trading resumed, marking a roughly 23 per cent increase from March 6’s closing price of $92.69. US benchmark West Texas Intermediate (WTI) crude also climbed to around $114 per barrel, about 25 per cent higher than its March 6 close of $90.90.
The surge followed sharp gains last week, when US crude prices jumped 36 per cent and Brent crude rose 28 per cent amid intensifying conflict in the region.
The conflict, now entering its second week, has begun affecting countries critical to global oil production and transport, particularly around the Strait of Hormuz, a key maritime chokepoint through which roughly 15 million barrels of crude oil, about 20 per cent of the world’s supply, typically pass each day.
Threats of Iranian missile and drone attacks have nearly halted tanker movement through the strait. The waterway connects major oil producers including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.
As exports slow, Iraq, Kuwait and the UAE have already reduced oil production because storage tanks are filling up. At the same time, attacks on energy infrastructure have intensified supply concerns, with Iran, Israel and the United States (US) targeting oil and gas facilities since the conflict began.
Israeli strikes on oil depots and a petroleum transfer terminal in Tehran early on March 8 killed four people, according to Iranian authorities. Israel’s military said the facilities were being used to fuel Iranian missile launches. Iran’s parliament speaker Mohammad Bagher Qalibaf warned that the war’s impact on the global oil industry could escalate further.
The rapid surge in energy prices has unsettled global financial markets, triggering fears that higher fuel costs could accelerate inflation and weaken economic growth.
US stock index futures fell late March 8, signalling a weaker opening on Wall Street. Futures for the S&P 500 dropped 1.6 per cent, Dow Jones futures fell 1.8 per cent and Nasdaq futures declined 1.5 per cent.
On March 6, the S&P 500 had already fallen 1.3 per cent, while the Dow Jones Industrial Average plunged by as much as 945 points before closing with a loss of about 450 points. The Nasdaq Composite dropped 1.6 per cent.
Energy costs in the US have also risen sharply. According to the AAA motor club, the average price of regular gasoline reached $3.45 per gallon on March 8, about 47 cents higher than a week earlier. Diesel prices climbed to around $4.60 per gallon, up roughly 83 cents over the same period.
US Energy Secretary Chris Wright said gasoline prices could fall again soon, stating that the surge may be short-lived. “You never know exactly the timeframe, but in the worst case this is a week, not a months-long situation,” he said during an interview to CNN.
Natural gas prices have also climbed, though less sharply than oil. Gas traded at around $3.33 per 1,000 cubic feet late March 8, about 4.6 per cent higher than March 6’s closing price of $3.19 after rising roughly 11 per cent last week.
Spot liquefied natural gas (LNG) prices have also increased amid concerns that supplies from Qatar, one of the world’s largest LNG exporters, could be disrupted.
Iran exports around 1.6 million barrels of oil per day, largely to China. Analysts say any disruption to those exports could force major buyers to seek alternative suppliers, adding further pressure on global energy markets.
Governments across Asia are already taking emergency steps to protect their economies from the energy shock.
South Korea announced plans to cap domestic fuel prices for the first time in nearly three decades. President Lee Jae Myung said authorities would also seek alternative energy supplies outside routes passing through the Strait of Hormuz and could expand a 100 trillion won ($67 billion) market stabilisation programme if required.
Japan has instructed a national oil reserve storage site to prepare for a possible release of crude oil from strategic reserves, according to Akira Nagatsuma, a member of the Centrist Reform Alliance opposition party.
Vietnam is planning to remove import tariffs on fuels until the end of April to stabilise domestic supply, while Bangladesh has announced the closure of all universities from March 9, bringing forward Eid al-Fitr holidays as part of measures to conserve electricity and fuel.
India has already invoked emergency powers and directed refiners to maximise production of liquefied petroleum gas (LPG) to avoid shortages of cooking fuel amid supply disruptions caused by the West Asia crisis.
According to the finance ministry’s Monthly Economic Review for February, released on March 6, rising geopolitical tensions in West Asia pose fresh risks to India’s economy. The review, prepared by the Department of Economic Affairs, warned that a prolonged conflict could threaten India’s energy security, raise inflation and increase the country’s import bill.
India is particularly exposed to disruptions in the Strait of Hormuz because a large share of its crude oil and liquefied natural gas imports pass through the corridor. The country sources about 59 per cent of its LNG imports from Qatar and the United Arab Emirates.
Amid mounting volatility, the OPEC+ alliance has scheduled emergency discussions to consider deploying roughly 3.5 million barrels per day of spare production capacity to stabilise global oil markets.
Analysts caution that if the conflict escalates further or leads to a sustained closure of key shipping routes in the Gulf, oil prices could climb even higher, intensifying inflationary pressures and slowing economic growth worldwide.