Oil prices spike 8% as Iran conflict disrupts global energy supplies

Oil prices rose on Monday, March 2, following the broader U.S.-Israel conflict, as the major oil passage, the Strait of Hormuz, is disrupted.

The disruption of tanker traffic raises fears of prolonged supply shocks to the global economy.

U.S. crude jumped to 72.12 per barrel, surging prices to 7.6%, while internationally Brent rose to 8.6% to $79.11.

Beyond crude and oil, natural gas also rose to more than 40% after QatarEnergy halted liquified natural gas production due to military attacks on its facilities.

Due to attacks on vessels and disturbances in navigation, tanker traffic dropped sharply.

Among the reported incidents is a bomb-carrying drone boat that struck a Marshall Islands-flagged oil tanker in the Gulf of Oman. A crew member also got killed. 

As reported by Saudi authorities, the Ras Tanura refinery is also partially shut down as a precaution following the interception of Iranian drones targeting the refinery.

Experts also warn that prices can rise to $90 if the conflict spreads.

The gasoline prices rose to an average of $2.98 per gallon and can rise 10-30 cents in the coming days.

With rising oil prices, threats of reignited inflation have also begun. Stock markets tumbled, with the Dow falling over 400 points and European indexes dropping sharply as investors fled to safe-haven assets.