By David Goldman, CNN
(CNN) — A historic disruption to the world’s oil production sent crude prices smashing through the $100 barrier Monday for the first time in nearly four years.
With no end in sight to the war with Iran, oil futures could have considerably more room to run even higher.
In fact, oil prices very nearly hit $120 a barrel overnight before reports surfaced that Western nations would discuss steps to alleviate high fuel prices. That eased a bit of tension in the marketplace. But not much.
Monday morning, oil futures were 13% higher. Both US oil and Brent, the international benchmark, were on pace for their biggest single-day increase in dollars per barrel in history.
US oil futures rose $12 a barrel, to $103, and Brent futures were also up $12, to $105. Neither US nor Brent have ever risen as much as $11 in a single day. The previous single-day record ($10.75) was set on June 6, 2008.
The last time oil traded above $100 was in the wake of Russia’s attack on Ukraine. Oil broke above $100 in March 2022 and stayed around there until July 19, 2022. It hadn’t touched triple digits since.
What’s going on?
The war with Iran has sent oil prices higher for two primary reasons: a near shutdown of the Strait of Hormuz and a slowdown in oil production in the Middle East.
The Strait of Hormuz is a narrow waterway through which 20% of the world’s oil travels via tankers. Iran has threatened to attack any tanker transiting the strait. That has led to a standstill in oil pickups and deliveries in the region.
Because oil isn’t moving, producers in the oil-rich region have run out of room to put their crude. They’ve been left with no choice but to slow down their output.
As oil prices have surged, so too have gasoline prices. US gas prices have risen about 50 cents in a week to $3.48 a gallon, higher than at any point in either of President Donald Trump’s terms.
How long could this last?
The good news: The world has plenty of oil. We were sitting on a supply glut before the war, which is why oil had been so cheap, trading for around $60 a barrel before the United States and Israel attacked Iran.
Oil traders don’t think $100 oil is here to stay. Looking forward to contracts for delivery in 2027 and 2028, oil futures are trading in the high $60s, noted Dan Pickering, founder and chief investment officer at Pickering Energy Partners.
The bad news: This war with Iran is lasting longer than most traders had initially expected. The historic spikes in oil prices reflect that early complacency is giving way to the harsh reality that the war isn’t going to be over in a matter of days.
“I would say that the move is a bit overdone in the very short term, but if between now and the end of March you don’t have an amelioration of traffic around the strait, we could go to $150 a barrel,” said Homayoun Falakshahi, lead crude research analyst at Kpler.
Meanwhile, governments are working to alleviate some of the pressure on prices in the market: The G7 nations’ finance ministers will meet Monday to discuss joint release of oil reserves. And the Trump administration continued to promote a plan to supply insurance to oil tankers passing through the strait, after maritime insurers said they would not cover ships in the region if they were attacked.
The White House also said it would work to secure naval escorts for ships, but a plan hasn’t emerged, and shipping companies have said they are hesitant to traverse the region while the conflict continues.
Meanwhile, absent a compelling solution to the strait’s closure, oil prices will continue to march higher.
“The higher the price goes, the more pressure on the Trump administration to do something to protect the strait,” said Pickering. “The longer it takes to re-open, the more upward pressure on price. A reinforcing cycle.”
The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
Historic price shock: Oil surges above $100 News Channel 3-12.
Hence then, the article about historic price shock oil surges above 100 was published today ( ) and is available on News channel ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Historic price shock: Oil surges above $100 )
Also on site :