Oil prices rise due to Iran war as Brent hits $90.95 and US crude climbs, with Strait of Hormuz shipping disrupted amid ongoing US Iran strikes.
Oil prices rise due to Iran war fears after the United States launched a ninth straight night of attacks and Tehran struck back at American allies across the Middle East. Brent crude jumped 3.2% to $90.95 a barrel, while US benchmark crude gained 2.8% to $84.04 a barrel in early trading.
Why Are Oil Prices Rising Due to the Iran War
The exchange of strikes between Washington and Tehran has turned deadly on both sides, according to ING commodities strategists Warren Patterson and Ewa Manthey. In a note issued Monday, they warned that unchecked escalation could push the region back into a period of widespread attacks across the Persian Gulf, a scenario that traders are already pricing into crude futures.
Tanker traffic through the Strait of Hormuz, the narrow passage that carries a huge share of the world's seaborne oil, has slowed to a crawl. That bottleneck is squeezing supply just as buyers grow nervous about how long the conflict will drag on.
Markets Beyond Crude Feel the Strain
The fallout is not confined to energy markets. Jonas Goltermann, chief markets economist at Capital Economics, said in a Monday note that renewed fighting near the Strait of Hormuz could weigh more heavily on broader financial markets soon, particularly if strong technology earnings keep getting brushed aside by skeptical investors.
That skepticism showed up Friday when chipmaking and other AI linked shares slid, dragging global equity benchmarks such as the S&P 500 (tracked by SPY) and the Nasdaq 100 (tracked by QQQ) lower. Heavy spending commitments tied to artificial intelligence have stirred bubble concerns, prompting some investors to book profits after a long run of gains.
A New Chinese AI Model Adds to the Jitters
Adding to the unease, Beijing based Moonshot AI rolled out its Kimi K3 open source model. The launch echoed the shock that followed DeepSeek's debut in early 2025, when a lower cost Chinese model rattled global markets and raised fresh questions about the competitive edge held by Western developers such as Anthropic's Claude and OpenAI's GPT.
Frequently Asked Questions
Will oil prices rise due to Iran war?
Prices have already risen, with Brent crude up 3.2% and US crude up 2.8% as strikes between the US and Iran continue and Hormuz shipping slows.
Will gas prices rise due to Iran war?
Higher crude costs typically feed through to pump prices over days or weeks, so continued fighting raises the likelihood of gasoline prices climbing.
Will fuel prices rise due to Iran war?
Diesel, jet fuel and other refined products tend to move with crude oil, so sustained conflict and Strait of Hormuz disruptions point toward broader fuel price increases.
Will gas prices increase due to Iran war?
Yes, if the current escalation persists and Hormuz traffic remains restricted, refiners' input costs will likely keep rising, pushing retail gas prices higher.
How much will gas prices rise due to Iran war?
No specific pump price figures have been reported yet, but the size of any increase will hinge on how long the strikes and Strait of Hormuz slowdown last.
