MW Gasoil is spiking more than crude. What it is and why prices are soaring amid Iran conflict

By Barbara Kollmeyer

A reported strike on a Saudi Aramco refinery triggered a sharp price hike

Ras Tanura port, located on a small peninsula with access to deep water.

While the world kept close watch on climbing crude oil prices on Monday, the so-called workhorse fuel of the industrial world was seeing a far more dramatic response as the Iran conflict reaches its third day.

On a continuous contract basis, gasoil futures (GAS00) soared 15% on the International Exchange to $869 per metric ton. Heating oil futures (HO00) jumped 11%, Brent crude (BRN00) was up 7% to over $78 a barrel and West Texas Intermediate crude (CL.1) rose over 6% to $71 a barrel.

Gasoil is a crude oil derivative, commonly known as diesel oil, used for agricultural machinery, ships and railways, making it a crucial industrial fuel. Prices at one point early Monday shot up over 21% amid reports that one of Saudi Aramco's (SA:2223) biggest refineries, Ras Tanura, was hit by a drone strike, forcing its closure.

The Saudi Energy Ministry acknowledged limited damage at the Ras Tanura refinery, saying debris hit it from two drone strikes, causing a limited fire that was contained. But the strike clearly rattled the energy market, as prices for oil and diesel fuel surged on those headlines.

Ras Tanura is a key port facility that sits on the eastern coast of the country on the Persian Gulf. State-owned Saudi Aramco, the world's biggest oil producer and one of the world's biggest refineries, now finds itself in the crosshairs of a conflict that could be far from over. Ras Tanura itself processes over 550,000 barrels of oil per day. Aramco shares rose 1.2% on Monday, after a 3.3% jump on Sunday.

Saudi Arabia's Riyadh international airport and its Prince Sultan Air Base were targeted by Iranian missiles over the weekend as Iran has retaliated against the wider Middle East region. President Donald Trump has warned that the conflict could stretch for up to four more weeks.

For gasoil futures, Monday's strong jump could lead to the highest close since November 2023, when it closed at $910 per metric ton, and is on pace for its biggest percentage rise since May 2020, when it jumped over 23%, according to Dow Jones Market Data. +

Those futures are now up 21% over three straight sessions, which would mark the best such run since March 2022.

Read: The whole world is watching this critical energy chokepoint as Iran conflict enters more dangerous phase

-Barbara Kollmeyer

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March 02, 2026 05:31 ET (10:31 GMT)

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