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Oil prices surged close to $120 per barrel on Monday, March 9, following Iran’s announcement of a new supreme leader, before later retreating to around $106.23 per barrel.
The appointment of Mojtaba Khamenei signaled the continued dominance of hardline leadership in Tehran, raising fears of prolonged disruption to shipping through the Strait of Hormuz and sending shockwaves through global financial markets.
Brent crude, the global oil benchmark, climbed to an early high of $119.50 per barrel before easing back to $106.23. Meanwhile, West Texas Intermediate, the main U.S. crude benchmark, rose to $119.48 before dropping to $101.25.
Tensions in the region intensified as the conflict expanded across key energy zones. Bahrain accused Iran of targeting a desalination facility essential for drinking water supplies, while Israeli strikes reportedly hit oil depots in Tehran overnight, leaving facilities smoldering.
The ongoing conflict, now entering its second week, has increasingly involved areas critical to oil and gas production and transport in the Persian Gulf. Concerns about the stability of supply routes have heightened volatility across energy markets.
Prices cooled slightly after reports that members of the Group of Seven were discussing the possible release of strategic oil reserves to help stabilize global supply. The discussions, reported by sources familiar with the talks, have not been officially confirmed.
