US and Israel's War on Iran Sends Oil Above $100, Threatens Global Recession

Global oil prices have surged above $100 per barrel as the war involving Iran spreads into major production and shipping areas, sharply tightening supply and disrupting tanker traffic through the Strait of Hormuz.

“Published: 09 Mar 2026 10:03 Updated: 13 hours ago Analysis: Oil prices could break $120 per barrel; global economy faces recession risk As oil prices continue to climb, analysts warn of significant effects on the global economy”

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Multiple outlets report that Brent and U.S. West Texas Intermediate both topped $100, with the Strait of Hormuz — which normally handles about 20% of world oil shipments — cited as a key chokepoint whose disruption has pushed markets higher.

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These developments come alongside reports that "Israeli strikes targeted energy assets in Iran," adding to market fears about prolonged disruption to regional oil flows.

Supply-side disruptions have been severe, with several producers curbing output as storage nears capacity and export routes are blocked.

Iraq in particular has seen a dramatic drop in flows, with reports saying “Iraq’s output has fallen about 70% to roughly 1.3 million barrels per day” and Basra Oil Company describing storage as full.

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Other major producers, including Kuwait and the UAE, are also cited as having cut output amid export difficulties.

Analysts warn that if wells must be shut or exports remain blocked, the loss of physical supply could deepen and prolong the price shock.

Market strategists and banks are forecasting volatile, higher peaks for oil if fighting continues.

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JPMorgan’s chief economist is quoted saying oil could "briefly hit about $120/barrel before easing."

ANZ strategists warn that a further deepening in prices could result if wells must be shut and supply restoration is delayed.

The combination of physical outages, strikes on infrastructure, and chokepoint risk has already produced rapid price moves, with crude futures jumping nearly 20% on the reports, underscoring how fragile supply is in the current conflict.

Analysts warn the price shock risks broader economic harm.

If disruption persists, Brent could average lower later in the year but still trim near-term growth and lift consumer prices.

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A larger escalation could push crude above $120 and threaten a global recession.

One estimate projected Brent averaging around $80 into mid-year could 'shave 0.6 percentage points off annualized global growth in H1 and lift consumer prices by about 1 percentage point.'

A prolonged escalation could have worse outcomes.

At the retail level U.S. gasoline prices have already moved higher, with the national average for regular gasoline reported to have risen about $0.47 in a week to roughly $3.45 per gallon.

This development will particularly affect energy hubs like Houston.

Outlook remains highly uncertain and dependent on whether the conflict and strikes on energy infrastructure abate or widen.

“HOUSTON – Gas prices could begin rising in Houston as global oil prices surge past $100 per barrel, driven by the ongoing war involving Iran and disruptions to oil production and shipping in the Middle East”

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Sources explicitly link future trajectories to political outcomes, noting that if 'no political solution appears' prices and economic damage could be larger.

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Other reporting highlights ongoing strikes by multiple state actors that are already tightening markets.

One provided fragment cautions that fuller reporting is needed to summarize all developments, underscoring gaps in public information about the full scale and duration of the disruption.