Iran War Surges Crude Oil Prices Past $115

Brent crude rose 24% to $115.31 a barrel, while U.S. West Texas Intermediate crude jumped 28% to $116.33 a barrel, following significant gains the previous week. The conflict has disrupted approximately 20% of the world's daily oil shipments that typically flow through the Strait of Hormuz.

Attacks on civilian targets, including a Bahraini desalination plant and Tehran oil depots, along with strikes on oil and gas facilities by Iran, Israel, and the U.S., exacerbate supply concerns. Iraq, Kuwait, and the UAE have cut production as storage tanks fill due to reduced export capabilities.

This price surge has globally rattled financial markets, fueling inflation fears and concerns about reduced consumer spending, a primary driver of the U.S. economy. Energy Secretary Chris Wright stated the worst-case scenario for the conflict's timeframe is "weeks, not months."