Oil Prices Set for Further Surge as Conflict in Iran Continues

The ongoing conflict in Iran has led to increased oil prices globally, and experts warn that prices may surge further due to the limited tools available to curb demand and boost supply.

Oil prices have risen from $65 a barrel before the conflict began in February 2026 to over $100 a barrel in mid-September. With global markets now largely exhausted of safety measures, significant price hikes and shortages may be on the way.

The Strait of Hormuz, normally the primary route for oil leaving the Middle East, has seen traffic below 15% of prewar levels, while attacks on pipelines have disrupted Saudi Arabia's oil exports. The US has already released 130 million barrels from its strategic reserves, and China has played a key role in containing global prices by releasing official reserves.

However, with China's oil demand starting to creep up again and its stockpiles dwindling, the country may soon seek to restock its inventories. This could lead to additional price hikes over the next few weeks, potentially even shortages in Europe, where 15% of French service stations have already run out of diesel or gas.