A motorboat cruises with a tanker in the background, in the Strait of Hormuz, off the coast of the United Arab Emirates, on February 25, 2026. Tanker traffic through the strait has essentially come to a halt after Iran declared the strait closed following attacks on Iran by the US and Israel.
Fadel Senna/AFP via Getty Images
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Fadel Senna/AFP via Getty Images
Global crude oil prices rose nearly 8% and stocks fell as the war with Iran entered its third day.
Brent crude, the global benchmark, was trading in the high $70s on Monday morning after tanker traffic through the Strait of Hormuz was effectively suspended.
This is a sharp rise before the US and Israeli attacks, but far from a worst-case scenario. Analysts have warned that prices could rise to $100 a barrel if oil trade is disrupted for a long time or if the war spreads to neighboring countries and destroys oil infrastructure. Saudi Arabia said it shot down drones targeting an oil refinery, while Qatar Energy said two natural gas facilities were attacked.
Meanwhile, stock markets tumbled, with the Dow Jones Industrial Average falling more than 400 points and the S&P 500 losing 0.7% in early trading Monday. As investors worry that rising fuel prices could lead to higher inflation, price gains appear to be slowly moderating.
Petrol price likely to rise; Natural gas spikes
Global energy markets were shut down on Saturday when the US and Israel attacked Iran. When trading opened on Sunday night, prices briefly topped $80 a barrel before settling down a bit.
Patrick de Haan, an analyst at GasBuddy App, estimates that the rise in crude oil prices will increase US gasoline prices by an average of 10-30 cents over the next few days, with prices rising as much as 85 cents at some individual stations.
About 20% of global oil consumption passes through the Strait of Hormuz. Four ships have been hit in Gulf waters since the conflict began; With shipping companies and their insurers concerned about the safety of ships, tankers are less likely to risk passing through the strait.
Meanwhile, the strait is a major chokepoint for trade in liquefied natural gas, or LNG — natural gas used to heat homes and make electricity, which is loaded onto ships for easy global trade. European natural gas markets rose more than 20%.
After recent investments in LNG terminals, the US is the world’s largest exporter of LNG. Higher prices encourage companies that send natural gas overseas, but also contribute to rising electricity costs in the US.
NPR’s Raphael Nam and Aya Batrawi contributed to this report.
