Oil Jumps as Iran and Israel Trade Strikes on Energy Facilities

Oil prices surged over 5% after Iran and Israel exchanged direct strikes on key energy infrastructure, including refineries and shipping terminals, escalating Middle East tensions in March 2026. Iran’s Revolutionary Guard targeted Israel’s Eilat-Ashkelon pipeline, disrupting crude flows to Mediterranean ports, while Israel retaliated by striking Iran’s Kharg Island oil terminal, cutting exports temporarily. Global markets reacted sharply, with Brent crude hitting $110/barrel—its highest since 2022—as traders feared prolonged supply disruptions amid the conflict’s widening scope. The U.S. urged de-escalation but deployed additional naval assets to the Gulf, signaling preparedness for potential blockades or further attacks on critical energy routes. Analysts warn sustained hostilities could trigger a 1970s-style oil shock, with OPEC’s spare capacity unable to offset losses if major Persian Gulf facilities face repeated strikes.