Oil prices jumped late Sunday as fears grew that the escalating Iranian conflict could drag on for weeks, rattling global energy markets.
Global benchmark Brent crude briefly jumped to $82.37 a barrel – its highest level since January 2025 – in the first wave of trading that followed. the United States and Israeli strikes on Iran that killed Supreme Leader Ali Khamenei, according to Reuters.
As of 7:54 p.m. ET, Brent had retreated slightly but was still up more than 7% at $78.24 per barrel.
U.S. West Texas Intermediate crude also jumped nearly 7%, climbing to $71.68 after briefly hitting $75.33 – its highest level since June last year.
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Smoke rises above the city center after the Israeli army launched airstrikes on Iran, February 28, 2026. (Fatemeh Bahrami/Anadolu via Getty Images / Getty Images)
Citi analysts warned that prices could rise further if the conflict persists, forecasting that Brent could trade between $80 and $90 a barrel in the coming days.
Israel launched new strikes against Iran on Sunday, and Tehran responded with new missile barrages, further escalating tensions in a region responsible for a significant part of the conflict. global oil productionReuters reported.
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An aerial view of the port of Fujairah, United Arab Emirates, in the Strait of Hormuz, December 10, 2023. (Reuters/Stringer/Reuters)
On Sunday, missiles also struck several oil tankers near the Strait of Hormuz – the world’s most critical oil export route – killing a crew member and raising alarm across the country. global marketsReuters reported.
As tensions rose on Sunday, more than 200 ships – including oil tankers and liquefied natural gas tankers – were anchored near the passage that carries about 20% of the world’s oil supply, according to Reuters.
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In this image provided by the Office of the Supreme Leader of Iran, Iranian Supreme Leader Ali Khamenei addresses the nation during a state television broadcast June 18, 2025 in Tehran, Iran. (Office of the Supreme Leader of Iran via Getty Images/Getty Images)
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Iran reportedly decided to restrict shipping along the Strait of Hormuz following the strikes.
The main exporters, including Saudi ArabiaIraq, the United Arab Emirates, Kuwait and Iran rely heavily on this route.
Reuters contributed to this report.
