Iran crisis escalates: Oil prices jump as attacks stop Strait of Hormuz shipping

March 7, 2026

TL;DR

Attacks on tankers have disrupted shipping through the Strait of Hormuz, causing oil prices to hit multi-month highs.
Brent crude topped $90 per barrel and West Texas Intermediate surpassed $87, with both benchmarks up over 20% for the week.
Qatar halted LNG production following attacks on its energy facilities, leading to significant spikes in gas prices.
The Strait of Hormuz carries about one-fifth of the world's oil exports and 20% of its LNG.
Around 300 ships are estimated to be at anchor due to the disruptions.
The US sunk an Iranian warship and is considering naval escorts for tankers through the strait.
Maritime insurers have withdrawn war risk coverage for ships in the region, leading to a sharp increase in premiums.
Shipping companies face significantly higher costs for insurance and chartering tankers.
Experts warn of sharper price spikes if disruptions persist, with crude potentially climbing above $100 per barrel and gas prices quadrupling.
Producers like Iraq and Kuwait have begun curbing output due to stalled exports and full storage capacity.

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