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Geopolitical Tensions Send US WTI Crude to 8‑Month High of $72
On Monday, March 2, 2026, oil markets surged as the US West Texas Intermediate (WTI) benchmark rallied more than 7% to $72 per barrel – its highest level in eight months. The rally was triggered by unprecedented joint US‑Israeli air strikes on Iran, which reignited concerns about the stability of global energy supplies. While OPEC+ announced a modest production increase of 206,000 barrels per day starting in April, the hike is far below earlier expectations and does little to offset the geopolitical risk premium. Investors are closely monitoring the Strait of Hormuz and any further military actions that could disrupt the flow of roughly one‑fifth of the world’s oil exports.
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Date: Monday, March 2, 2026
Geopolitical flare‑up pushes WTI to eight‑month peak
Oil markets rallied sharply on Monday as the US benchmark West Texas Intermediate (WTI) crude surged more than 7% to $72 per barrel, the highest level since July 2025. The price jump peaked at a 10% intraday rise.
The rally follows an unprecedented joint US‑Israeli air strike campaign against Iranian facilities, reviving worries about the stability of global energy supplies.
Traders are keeping a close eye on the Strait of Hormuz, a strategic choke‑point that handles roughly 20% of worldwide oil exports and significant volumes of natural gas. While Tehran maintains that the passage remains open, several shipping lines have already rerouted vessels, stoking concerns over potential logistical disruptions.
In retaliation, Iran launched missile salvos targeting US bases across the region, including locations in the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria.
On the supply side, OPEC+ announced on Sunday a modest increase of 206,000 barrels per day starting in April, ending a three‑month production pause. The hike falls well short of the earlier range of 411,000–548,000 bpd, limiting its ability to offset the current geopolitical risk premium.
Market participants remain on high alert for any further military escalation or policy shift that could tilt the global oil balance.
- Oil: OPEC+ reacts to the war in Iran with a larger‑than‑expected production boost (Sunday, March 1)
- Strikes on Iran: What’s the impact on oil? (Saturday, February 28)
- Oil prices hit multi‑month highs (Thursday, February 19)
- OPEC+ keeps production steady for March despite Iran concerns (Monday, February 2)