By Alex Kozul-Wright

Oil prices spiked early Monday with Brent crude briefly hitting $80 a barrel as the conflict in the Middle East widened and escalated.

Israel launched strikes on Hezbollah targets in Lebanon after the Iran-backed militant group fired its own rockets overnight in retaliation over the death of Iran's Supreme Leader Ali Khamenei, The Wall Street Journal reported.

Brent crude futures were trading at $79.23 a barrel, up 8.8% from Friday's close. Earlier on Monday, Brent futures climbed to over $82 a barrel. West Texas Intermediate futures rose 7.9% to $72.32 a barrel. WTI also pared back some earlier gains, when futures hit $75.33.

Missile strikes continued into a third day Monday as the escalation threatened global oil supply. Saudi Aramco's Ras Tanura oil refinery was partially closed after being hit by debris following the interception of two drones, Saudi Press Agency reported, citing a source at the Ministry of Energy.

It added that some units were shut down as a precautionary measure "without any impact on the supply of petroleum." However, the damage done by Iranian drones is a warning of the potential disruption to oil markets.

The Strait of Hormuz, a vital maritime chokepoint that transports roughly 20% of the world's oil, is effectively closed amid the conflict. Iran has reportedly said ships are "not allowed" to pass through it, while insurers have vowed to cancel policies for tanker who do.

If the strait remains closed for a prolonged period, $100 a barrel could soon be a reality.

The OPEC+ cartel of oil-producing nations agreed to hike output by 206,000 barrels a day from April, following a virtual meeting on Sunday.

The organization, which includes Saudi Arabia, U.A.E. and Russia among others, did not reference the conflict in its statement but said it will "continue to closely monitor and assess market conditions."

Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com

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March 02, 2026 05:51 ET (10:51 GMT)

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