Middle East Tensions Spark Surge in Oil and Gas Prices

Oil and natural gas prices surged on Monday following Israeli and U.S. strikes on Iran, which prompted Tehran to retaliate. These geopolitical tensions forced the shutdown of energy facilities across the Middle East, significantly disrupting shipping through the Strait of Hormuz.

The price of Brent crude oil hit $82.37 per barrel at its peak, marking the highest level since January 2025, before settling at $78.92. Meanwhile, U.S. West Texas Intermediate crude climbed to $72.24 per barrel. The rising prices have raised concerns about rekindled inflation and potential impacts on American gasoline prices, a sensitive issue given the upcoming U.S. midterm elections.

The conflict also led Saudi Arabia, Qatar, and other regional players to reduce output, impacting global energy supplies. This situation could drive Brent prices beyond $100 per barrel, with potential ripple effects across various sectors, including retail gasoline, which is at risk of surpassing $3 a gallon in the U.S.