Oil prices exploded higher on Monday after Israeli strikes hit Iranian oil facilities for the first time since the conflict began in early March. The attack pushed Brent crude and West Texas Intermediate futures both to an intraday high of $119.50 a barrel, levels not seen since mid-2022.
BREAKING: US oil prices are currently attempting one of their biggest reversals in history.
At 10:30 PM ET, US oil prices were up as much as +30% on the day.
Then, FT reported that G7 countries are considering releasing 400 million barrels of crude oil from reserves.
Less than… pic.twitter.com/G1uRHvkFxX
— The Kobeissi Letter (@KobeissiLetter) March 9, 2026
By midday, Brent was trading at $106.80 a barrel and WTI at $102.79, after coming off those overnight peaks. The pullback came after a Financial Times report that G7 finance ministers would meet Monday to discuss releasing emergency petroleum reserves.
The meeting is expected to involve coordination with the International Energy Agency. Three G7 members, including the United States, have already expressed support for a joint reserve release.
Oil had surged more than 25% since the Iran conflict began in early March. The weekend escalation pushed prices even higher as markets opened Sunday night.
Israel struck fuel storage facilities in Tehran on Saturday. Iran responded by hitting an oil refinery in Bahrain with drones, according to the Wall Street Journal.
Iran also launched attacks on ships passing through the Strait of Hormuz. The strait handles around 20% of global oil consumption, and traffic through it is now described as minimal.
Analysts at OCBC wrote that “tail risks from a sustained Hormuz stoppage remain in play,” comparing the potential scale to the 2022 Russia-Ukraine energy shock.
Deutsche Bank strategist Jim Reid said the G7 reserve release could help, but added “the duration and intensity of the conflict will still be far and away the most important driver.”
Kuwait and the UAE both signaled cuts to oil output over the weekend, following Iraq’s production reductions last week. Storage constraints linked to supply disruptions are forcing some producers to scale back.
Saudi Arabia made a rare move by offering crude on spot markets, a sign it is trying to fill supply gaps caused by the conflict.
President Donald Trump acknowledged the oil price surge on Sunday. He said prices were likely to remain elevated in the near term but would “drop rapidly” once the conflict with Iran ends.
Trump had previously downplayed rising U.S. gas prices, telling Reuters that the military operation against Iran was his main priority.
U.S. gasoline futures rose more than 10% on Monday, climbing above $3.00 a gallon and nearing their highest point since mid-2022.
Jefferies economist Mohit Kumar said the bombing of Iran’s oil infrastructure “suggests a shift in war strategy,” warning that targeting critical infrastructure raises both civilian and economic costs.
OCBC analysts said in a moderately severe scenario where partial flows resume under military escort, Brent could remain near $100 a barrel through mid-year.
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