Oil prices have risen above $100 per barrel as energy markets face the biggest disruption to global energy supplies in a generation, with Brent crude surging more than 9 percent as the United States and Israel wage war on Iran. Global oil prices have surged by more than 25 percent since the start of the war, driving up fuel prices for consumers worldwide.
The conflict has led to the suspension of about a fifth of global crude oil and natural gas supply, as Tehran targets ships in the vital Strait of Hormuz and attacks energy infrastructure across the region. No more than five ships have passed through the waterway each day since the US and Israel launched strikes on Iran on February 28, compared with an average of 138 daily transits before the war.
California's gasoline prices surged above $5 per gallon during the second week of March 2026, amid the United States' conflict with Iran. Wholesale prices for gasoline futures could rise 25 cents immediately because of the war, potentially translating to increases of 5 to 10 cents per day for consumers.
The first week of the war reportedly cost U.S. taxpayers upwards of $11 billionβa figure that doesn't include the buildup of troops and warships in the region. Oil prices are up nearly 40 percent compared with before the start of the war, despite the International Energy Agency's announcement that member countries would release 400 million barrels from emergency stockpiles.
Iran's military warned that oil could reach $200 per barrel if attacks on its energy infrastructure continue. Whether rising costs and inflationary pressures persist will largely depend on how soon the conflict is de-escalated and transit through the Strait of Hormuz can safely resume.
