Oil prices eclipsed $114 per barrel for the first time since 2022 on Monday as the Iran war intensified, threatening production and shipping in the Middle East. The price for a barrel of Brent crude, the international standard, surged past $114 after trading resumed on the Chicago Mercantile Exchange, up 23% from its Friday closing price of $92.69.
West Texas Intermediate, the light, sweet crude oil produced in the United States, also was selling for about $114 a barrel — 25% higher than its close Friday at $90.90. The war's toll on civilian targets grew early Monday as Bahrain accused Iran of striking a desalination plant vital to drinking water supplies, and oil depots in Tehran smoldered following overnight Israeli strikes.
The increases followed the U.S. crude price jumping by 36% and Brent crude rising by 28% last week. Oil prices have surged as the war, now in its second week, ensnared countries and places that are critical to the production and movement of oil and gas from the Persian Gulf.
What the Right Is Saying
Conservatives have largely supported the U.S. military response and emphasized the need to ensure stable energy markets. Republican lawmakers praised the administration's actions and called for continued support for allies in the region.
House Foreign Affairs Committee Republicans said the U.S. must maintain pressure on Iran and ensure that global energy markets remain stable. Several conservative commentators argued that the price increases are a temporary market reaction and that American energy production provides a buffer against longer-term disruption.
Senate Republicans on the Energy and Natural Resources Committee emphasized that domestic production remains strong and called for streamlining permitting to increase output further. Conservative economic analysts argued that the market will stabilize once the conflict de-escalates, pointing to Energy Secretary Chris Wright's prediction that gas prices would return under $3 per gallon.
What the Left Is Saying
Progressive Democrats and consumer advocacy groups have raised alarms about the impact on American families at the pump. Several progressive lawmakers called for measures to protect consumers from price spikes, with some urging the administration to consider releasing oil from the Strategic Petroleum Reserve.
Senator Elizabeth Warren and other progressive Democrats have warned that higher energy costs disproportionately affect working families who spend a larger share of their income on gasoline and heating. Consumer groups noted that the price increases come at a time when many households are still recovering from pandemic-era inflation.
Progressive analysts also pointed to the war's humanitarian dimension, with Democrats calling for diplomatic solutions to end the conflict. Several House progressives introduced legislation calling for de-escalation and peace talks, arguing that continued hostilities will only drive prices higher and deepen economic hardship for American consumers.
What the Numbers Show
Roughly 15 million barrels of crude oil — about 20% of the world's oil — typically are shipped every day through the Strait of Hormuz, according to independent research firm Rystad Energy. The threat of Iranian missile and drone attacks has all but stopped tankers from traveling through the strait.
Brent crude closed at $114 per barrel, up 23% from $92.69 on Friday. West Texas Intermediate was at approximately $114, up 25% from $90.90. The last time Brent and U.S. crude futures traded near these levels was in 2022, after Russia invaded Ukraine.
In the U.S., a gallon of regular gasoline rose to $3.45 on Sunday, about 47 cents more than a week earlier, according to AAA motor club. Diesel was selling for about $4.60 a gallon, a weekly increase of about 83 cents.
Natural gas was selling for about $3.33 per 1,000 cubic feet late Sunday, up 4.6% from its Friday closing price of $3.19 after rising about 11% last week. Iran exports roughly 1.6 million barrels of oil a day, mostly to China.
U.S. stock index futures fell sharply Sunday night — the S&P 500 future was down 2.2%, while the Dow's fell 2.3%. The Nasdaq composite future was down 2.6%. On Friday, the S&P 500 dropped 1.3% and the Dow finished with a loss of roughly 450 points.
The Bottom Line
Oil prices have reached their highest level since 2022 as the Iran war disrupts production and shipping in a region responsible for roughly one-fifth of global oil supply. The conflict's expansion into key energy infrastructure has sent shockwaves through financial markets and threatens to push gasoline prices higher for American consumers.
Energy Secretary Chris Wright indicated the price spike may be temporary, suggesting gas prices could return under $3 per gallon within weeks if supply chains stabilize. However, analysts note that continued hostilities or further escalation could prolong elevated prices, potentially fueling inflation and reducing consumer spending — the main engine of the U.S. economy.
Markets worldwide reacted sharply, with Tokyo's Nikkei 225 index plunging more than 7% early Monday. Investors will be watching for any signs of de-escalation or further disruption to determine whether prices stabilize or continue climbing. The next few weeks will be critical in determining the trajectory of energy costs and their broader economic impact.