Oil prices spiked near $120 per barrel before falling back Monday as the war in Iran intensified, threatening production and shipping in the Middle East and pummeling financial markets worldwide.
The price for a barrel of Brent crude, the international standard, surged to $119.50 per barrel early in the day but later traded near $106 per barrel, up 14% before the opening bell. West Texas Intermediate, the U.S. crude standard, soared above $119.48 per barrel before falling back closer to $103. The last time both benchmarks traded near these levels was in 2022 after Russia invaded Ukraine.
What the Right Is Saying
Conservative Republicans have largely emphasized maintaining U.S. energy independence and resisting government intervention in markets. On Saturday, President Donald Trump downplayed the idea of tapping America's Strategic Petroleum Reserve, saying U.S. supplies were ample and prices would soon fall naturally.
Senator Ted Cruz of Texas, a member of the Senate Foreign Relations Committee, has argued that the U.S. should prioritize domestic energy production and resist any moves that would deplete strategic reserves. Conservative commentators have emphasized that market mechanisms, not government manipulation, should determine prices.
House Republican leaders have called for streamlining permitting for domestic oil and gas production as a longer-term solution to energy security concerns. Some have criticized what they characterize as premature discussions of strategic reserve releases, arguing such moves should remain available for genuine emergencies.
What the Left Is Saying
Progressive Democrats and their allies have emphasized the need for coordinated international action to stabilize energy markets and protect consumers from price spikes. French President Emmanuel Macron, whose country holds the rotating G7 presidency, said Monday that 'the use of strategic reserves is an envisaged option' and that G7 leaders could meet this week to coordinate a response.
Senator Jack Reed of Rhode Island, a senior member of the Senate Armed Services Committee, has called for diplomatic efforts to de-escalate the conflict while ensuring allied nations have access to diverse energy supplies. Environmental advocates have noted that volatile fossil fuel prices underscore the need for accelerated investment in renewable energy alternatives.
Progressive economists have warned that higher energy costs disproportionately affect working-class families and low-income households, who spend a larger share of their budgets on transportation and heating. Some have called for targeted consumer relief measures alongside any strategic reserve releases.
What the Numbers Show
Roughly 15 million barrels of crude oil, about 20% of the world's daily supply, typically ship through the Strait of Hormuz according to independent research firm Rystad Energy. Iranian missile and drone attacks have effectively halted tankers from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran from traveling through the strait.
In the United States, the average price of regular gasoline rose to $3.48 per gallon as of early Monday, up nearly 50 cents from a week earlier according to AAA. Diesel, used heavily in shipping and trucking, sold for about $4.66 per gallon, a weekly increase of more than 80 cents.
Natural gas in the U.S. sold for about $3.34 per 1,000 cubic feet early Monday, up from Friday's closing price of $3.19. Iran's oil exports total roughly 1.6 million barrels per day, mostly to China. South Korea's Kospi index tumbled 6% to 5,251.87 in early trading Monday.
Iraq, Kuwait and the UAE have cut oil production as storage tanks fill due to reduced export capacity. Bahrain's national oil company declared force majeure for shipments after an Iranian attack set its refinery complex ablaze, a legal release from contractual obligations due to extraordinary circumstances.
The Bottom Line
The war in Iran has disrupted a critical chokepoint for global oil supply, with the Strait of Hormuz effectively paralyzed by security concerns. While prices pulled back from session highs, they remain significantly elevated compared to recent months, with the conflict now in its second week.
The G7's consideration of strategic petroleum reserve releases represents the most immediate potential relief valve for market pressure. However, analysts note that coordinated releases would be a temporary measure and would not address the underlying supply disruptions caused by ongoing hostilities.
Asian economies, which rely heavily on Middle East oil imports, appear particularly vulnerable to prolonged price elevation. South Korea has already warned of penalties for refiners and gas stations caught hoarding or colluding on prices, while Southeast Asian consumers have begun facing long lines at filling stations. The economic fallout is expected to ripple through global supply chains in the coming weeks.