Oil prices rise sharply in market trading after attacks in Middle East disrupt supply
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Oil prices rose sharply when market trading began Sunday, as U.S. and Israeli attacks on Iran and retaliatory strikes against Israel and U.S. military installations around the Gulf sent disruptions through the global energy supply chain.
Traders were betting the supply of oil from Iran and elsewhere in the Middle East would slow or grind to a halt. Attacks throughout the region, including on two vessels traveling through the Strait of Hormuz, the narrow mouth of the Persian Gulf, have restricted countries' ability to export oil to the rest of the world. Prolonged attacks would likely result in higher prices for crude oil and gasoline, according to energy experts.
West Texas Intermediate, the light, sweet crude oil produced in the United States, was selling for about $72 a barrel Sunday night, according to data from CME group, up around 8 percent from its trading price of about $67 on Friday.
A barrel of Brent crude, the international standard, was trading at around $79 per barrel Sunday night, up about 8 percent from its trading price of $72.87 on Friday, according to FactSet.
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Roughly 15 million barrels of crude oil per day — about 20 percent of the world's oil — are shipped through the Strait of Hormuz, making it the world's most critical oil chokepoint, according to Rystad Energy. Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran.
Iran had temporarily shut down parts of the strait in mid-February for what it said was a military drill. Further disruptions to that shipping channel could lead to lower supply and higher prices for oil.
Attacks throughout the region, including on two vessels traveling through the Strait of Hormuz, the narrow mouth of the Persian Gulf, could restrict countries' ability to export oil to the rest of the world. That would likely result in higher prices for crude oil and gasoline, according to energy experts.
Against that backdrop, eight countries that are part of the OPEC+ oil cartel announced they would boost production of crude Sunday. The Organization of Petroleum Exporting Countries, in a meeting planned before the war began, said it would increase production by 206,000 barrels per day in April, which was more than analysts had been expecting. The countries boosting output include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.
"Roughly one-fifth of global oil supply passes through the Strait of Hormuz, a vital artery for world trade, meaning markets are more concerned with whether barrels can move than with spare capacity on paper," said Jorge León, Rystad’s senior vice president and head of geopolitical analysis, in an email. "If flows through the Gulf are constrained, additional production will provide limited immediate relief, making access to export routes far more important than headline output targets."
Iran exports roughly 1.6 million barrels of oil a day, mostly to China, which may need to look elsewhere for supply if Iran's exports are disrupted, another factor that could increase energy prices.
Gas prices rising in Minnesota
As oil prices rise, gas prices are increasing in Minnesota — with the military conflict in the Middle East adding to increases typically seen as spring approaches.
The price-tracking website GasBuddy reported Monday that gas was averaging $2.86 a gallon in the Twin Cities. That’s up about 8 cents over the past week, and up about 15 cents over the past month — though prices are still about a nickel a gallon cheaper than this time last year.
Statewide on Monday, the average price in Minnesota was about $2.80 a gallon. That’s nearly 15 cents lower than the national average.
AAA reported that the changeover from winter-blend gasoline to more expensive summer-blend gasoline typically causes prices to start rising in March. But GasBuddy reported that’s now heightened by concerns about conflict spreading in the Middle East.
“Looking ahead, markets will now begin reacting to this weekend’s U.S.-Iran attacks, which have elevated geopolitical risk premiums even in the absence of immediate supply disruption,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a news release. “Oil prices have firmed as traders assess the potential for further escalation, and while fundamentals such as inventories and refinery activity remain important anchors, the risk of broader instability — particularly involving key transit routes — has injected fresh uncertainty into energy markets.”
MPR News contributed to this report. Copyright 2026, NPR
