Crude Oil Prices Continue Rally for Third Straight Session Amid US-Iran Tensions

Market Update: Oil Prices Climb Amid Escalating US-Iran Conflict

Market Overview On Tuesday, March 3, Brent crude futures surged to $79.44 per barrel, a 2.2% increase from the previous day, as the conflict between the US, Israel, and Iran escalated. This marks the third consecutive session of gains in oil prices.

Price Movement Brent crude futures climbed to $79.44 per barrel, while US West Texas Intermediate (WTI) crude advanced to $72.40 per barrel, a 1.6% increase. In the previous session, WTI had reached its highest level since June 2025 before retreating.

Market Drivers The conflict between the US, Israel, and Iran is driving crude oil prices higher. The US and Israel's war against Iran has escalated, with Israel launching strikes on Lebanon and Iran retaliating by targeting energy infrastructure in Gulf nations and attacking tankers in the Strait of Hormuz. The Strait of Hormuz is a crucial waterway, with nearly 20% of the world's oil and gas supplies transiting through it.

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Supply Disruptions Several tankers and container vessels are steering clear of the Strait of Hormuz after insurers withdrew coverage, pushing global oil and gas freight rates sharply higher. The Iranian media reported that a senior official of the Islamic Revolutionary Guards Corps claimed the Strait of Hormuz had been closed and warned that Iran would open fire on any vessel attempting to cross.

Analyst Outlook Analysts believe rising geopolitical tensions in the Middle East are likely to keep oil prices elevated in the near term. Brokerage firms Emkay Global and JM Financial expect severe dislocation of oil supplies and global supply chains amid the ongoing tension in the Middle East. They also predict that Brent crude prices could rally to $90-$100 per barrel.