Oil Prices Surge Above $100 Amid US-Israeli War With Iran

Crude oil prices surged past $100 per barrel, peaking near $120 on March 9, 2026, following military strikes by the United States and Israel against Iran. The conflict disrupted approximately 20 million barrels of oil per day, with maritime traffic through the Strait of Hormuz collapsing by an estimated 80%. Strikes on oil depots in Tehran and a desalination plant in Bahrain, alongside Iranian threats to tankers, prompted production cuts in Iraq, Kuwait, and the United Arab Emirates as storage tanks filled.

Donald Trump dismissed the resulting energy price spikes, stating the costs were "a very small price to pay for U.S.A., and World, Safety and Peace." Conversely, Senate Democratic leader Chuck Schumer condemned the "reckless war of choice" and demanded the immediate release of the Strategic Petroleum Reserve to counter rising gasoline prices, which hit $3.45 per gallon in the U.S.

Global financial markets reacted sharply to the supply shock. The S&P 500 declined more than 2% since the conflict began, and Tokyo's Nikkei 225 shed 5.2%. Goldman Sachs warned that prolonged disruptions are the primary threat to U.S. equity earnings this year. In response to the volatility, G7 finance ministers met on March 9 to coordinate the release of emergency oil reserves, while nations including China, India, and Japan utilized their own strategic stockpiles to mitigate the economic shock.