March 4, 2026

U.S. crude oil prices surge over 7% amid Iran conflict fallout

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U.S. President Donald Trump announced on Sunday that the U.S. will “avenge” the deaths of three service members killed in Iran, marking an escalation in the ongoing conflict following U.S.-Israeli strikes that resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei. This development raises concerns over retaliatory attacks from Iran, potentially targeting U.S. and Israeli military bases in the Persian Gulf. The situation’s volatility has already impacted global markets, with U.S. crude oil prices soaring more than 7% amid fears of a major supply disruption, particularly if Iran were to close the Strait of Hormuz, a crucial route for global oil transit. The current geopolitical tensions have also led to significant disruptions in air travel, as airlines canceled hundreds of flights across the Middle East due to airspace closures.

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