Global oil prices have surged and stock futures have plunged following US-Israel military strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei, sparking retaliatory attacks 00:14, 02 Mar 2026 Updated 00:32, 02 Mar 2026
Global oil prices have already climbed following strikes across the Middle East after the US and Israel launched attacks on Iran over the weekend.
Roughly 15 million barrels of crude oil per day — about 20% of the world’s oil — are shipped through the Strait of Hormuz, making it the world’s most critical oil chokepoint, according to Rystad Energy. Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran.
West Texas Intermediate, the light, sweet crude oil produced in the United States, was selling for about $72 a barrel Sunday night, up around 8% from its trading price of about $67 on Friday, according to data from CME group.
A barrel of Brent crude, the international standard, was trading at around $79 per barrel Sunday night, according to FactSet, up about 8% from its trading price of $72.87 on Friday, which had been a seven-month high at the time.
READ MORE: Donald Trump tells Iran ‘better not’ strike after Ayatollah Khamenei killed
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The price spike happened almost instantly after the military action as stock futures tumbled in overnight trading, raising alarm among equity investors. Futures on the Dow fell 517 points, roughly 1%, with comparable figures recorded across the S&P and NASDAQ, whilst gold futures jumped 2% in reaction to the oil price surge.
It comes as Iran continues retaliatory strikes in response to US and Israeli strikes which led to the death of Ayatollah Ali Khamenei on Saturday. At least three civilians have been killed in the UAE.
US President Donald Trump announced Saturday that the US and Israel carried out a joint military operation targeting Iran overnight, which resulted in the death of Iran’s Supreme Leader Ayatollah Ali Khamenei.
Iran launched retaliatory strikes on Israel and US military bases throughout the Middle East in response to the attack, in which several dozen, including more than 50 primary school children, were killed.
Trump urged the Iranian people to seize this rare opportunity to overthrow its religious fundamentalist regime as the Iranian government pledged to unleash devastating attacks for what they described as a criminal assault, reports the Express US.
In a video statement on Truth Social, President Trump vowed to “avenge” US military deaths and “deliver the most punishing blow the terrorists who have waged a war against basically civilisation”.
“Combat operations continue in full force and will continue until all of our objectives are achieved,” he said in the six-minute clip upon his arrival back to Washington this evening.
The president continued to say that “sadly there will likely be more” US casualties, adding: “That’s the way it is.”
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https://www.mirror.co.uk/news/world-news/oil-prices-surge-stock-markets-36800852
