Global oil prices surged sharply as fighting tied to the ongoing Iran war intensified, raising fears of major disruptions to energy supplies. The international benchmark Brent Crude Oil climbed above $114 per barrel after trading resumed, a jump of roughly 23% from Friday’s closing price.

Meanwhile, West Texas Intermediate, the primary U.S. crude benchmark, also rose to around $114 per barrel, about 25% higher than its previous close. The price spike marks the highest level seen since 2022, when energy markets were shaken by the Russian invasion of Ukraine.

The surge comes as the conflict, now entering its second week, threatens energy infrastructure and shipping routes throughout the Middle East. Approximately 15 million barrels of oil per day — about 20% of global supply — normally pass through the strategically critical Strait of Hormuz, according to energy research firm Rystad Energy.

However, missile and drone threats linked to Iran have severely limited tanker traffic through the narrow waterway. The Strait is bordered by Iran and serves as a key export route for oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, and the United Arab Emirates.

Production cuts are already beginning to appear. Iraq, Kuwait, and the UAE have reportedly reduced output as storage tanks fill due to limited export capacity. At the same time, strikes targeting oil and gas facilities by Israel, Iran, and the United States have heightened fears of further supply disruptions.

The conflict’s economic impact is spreading beyond energy markets. Japan’s benchmark Nikkei 225 plunged more than 7% early Monday, while U.S. stock futures pointed toward a sharp decline at the opening bell. Futures tied to the S&P 500 fell about 2.2%, the Dow Jones Industrial Average dropped roughly 2.3%, and the Nasdaq Composite slipped about 2.6%.

Higher energy costs are already affecting consumers. According to AAA, the average price for regular gasoline in the United States climbed to $3.45 per gallon Sunday, about 47 cents higher than a week earlier, while diesel rose to roughly $4.60 per gallon.

Despite the surge, U.S. Energy Secretary Chris Wright said during an appearance on State of the Union that gasoline prices could drop below $3 per gallon again relatively soon if the conflict stabilizes.

Meanwhile, the war continues to take a human toll. Iranian officials said Israeli strikes on oil depots in Tehran killed four people, while Israeli forces said the facilities were being used to supply missile operations.

With Iran exporting roughly 1.6 million barrels of oil per day, much of it to China, analysts warn that prolonged disruptions could further strain global energy markets and intensify inflation pressures worldwide.