President Donald Trump addresses the American people after the US and Israeli attacks on Iran.
Oil prices rose late Sunday as fears grew that the escalating conflict in Iran could drag on for weeks, sending global energy markets reeling.
Global benchmark Brent crude briefly rose to $82.37 per barrel – the highest level since January 2025 – in the first wave of trading after US and Israeli attacks on Iran that killed supreme leader Ali Khamenei, according to Reuters.
At 7:54 PM ET, Brent had retreated slightly but was still more than 7% higher at $78.24 per barrel.
US West Texas Intermediate crude also rose almost 7%, climbing to $71.68 after briefly reaching $75.33 – its highest level since June last year.
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Smoke rises over the city center after the Israeli army launched airstrikes on Iran on February 28, 2026. (Fatemeh Bahrami/Anadolu via Getty Images/Getty Images)
Analysts at Citi warned that prices could rise further if the conflict continues, predicting Brent could trade between $80 and $90 a barrel in the coming days.
Israel launched new attacks on Iran on Sunday, with Tehran responding with new missile strikes, further escalating tensions in a region responsible for a significant portion of the world’s oil production, Reuters reported.
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An aerial view of the port of Fujairah, United Arab Emirates, in the Strait of Hormuz, December 10, 2023. (REUTERS/Stringer/Reuters)
Missiles also struck several oil tankers near the Strait of Hormuz – the world’s most critical oil export route – on Sunday, killing one crew member and raising alarms in global markets, Reuters reported.
As tensions rose on Sunday, more than 200 ships – including oil and liquefied natural gas tankers – were anchored near the passage that carries about 20% of the world’s oil supply, according to Reuters.
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In this handout image provided by the Office of the Supreme Leader of Iran, Iranian Supreme Leader Ali Khamenei addresses the nation in a state television broadcast on June 18, 2025 in Tehran, Iran. (Office of the Supreme Leader of Iran via Getty Images/Getty Images)
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Iran reportedly restricted navigation along the Strait of Hormuz following the attacks.
Major exporters, including Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Iran, are highly dependent on the route.
Reuters contributed to this report.
