Oil price climbs to $108 as escalating Iran conflict raises fears of global energy crisis

Oil prices surged past $100 per barrel on Sunday for the first time since Russia’s invasion of Ukraine in 2022, as investors reacted to escalating conflict in Iran.

According to a report originally published by CNN, traders fear the war could disrupt global oil supply, particularly through the Strait of Hormuz, a key shipping route that carries about 20 percent of the world’s oil.

US oil futures rose 18 percent to about $108 a barrel, the highest level since July 19, 2022. Brent crude, the global benchmark, increased 16 percent to nearly $108 a barrel.

The surge in oil price has also weighed on financial markets. Dow futures dropped more than 800 points, while S&P 500 and Nasdaq futures each fell about 1.6 percent as investors worried about inflation and economic pressure.

Gasoline prices in the United States have already begun rising as the average price reached $3.45 per gallon on Sunday, up 16 percent from the previous week, according to AAA.

Iran has threatened to target oil tankers traveling through the Strait of Hormuz. A senior Iranian official said: “Iran will not give up control of the Strait of Hormuz until it achieves its desired results.”

President Donald Trump attempted to calm concerns, telling ABC News the spike in gas prices is “a little glitch.” He described the increase as an expected “detour.”