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Oil Prices Surge Past $110 as Iran-Israel Conflict Threatens Global Energy Supply
Escalating strikes between Iran and Israel are sending shockwaves through global energy markets, driving oil and gas prices sharply higher and raising fears of a broader economic fallout.
2 min read
By Aurax Radio — Updated March 19, 2026
Image of Oil Refinery Saudi Arabia. Energy markets reacted sharply as fears of supply disruptions pushed oil prices higher.
Global Markets Rattled as Energy War Escalates
Global oil prices have surged dramatically as the conflict between Iran and Israel intensifies, with attacks on critical energy infrastructure triggering fears of a prolonged supply crisis.
Brent crude has climbed above $110 per barrel, with some spikes pushing prices even higher, as markets react to escalating strikes across the Middle East.
The surge follows a series of retaliatory attacks targeting oil and gas facilities in Iran and across the Gulf, signaling a dangerous shift from military confrontation to economic warfare through energy disruption.
Oil prices on the rise
Damage to major facilities signals a shift toward economic warfare through energy disruption.
Strikes Hit Key Global Energy Hubs
The situation escalated sharply after strikes on Iran’s South Pars gas field—one of the world’s largest—prompted retaliation from Tehran.
Iran has since launched attacks on energy infrastructure in multiple Gulf countries, including Qatar, Saudi Arabia, and Kuwait.
Particularly significant was damage to Qatar’s Ras Laffan industrial complex, a critical hub responsible for a major share of global liquefied natural gas (LNG) supply.
With LNG production disrupted and facilities forced to halt operations, analysts warn that up to 20% of global LNG supply could be affected, sending shockwaves through both Asian and European energy markets.
Oil, Gas, and Inflation Pressures Rise
The impact has been immediate:
Oil prices up more than 10% in days
Gas prices surging as much as 25%
Stock markets falling across Asia, Europe, and the U.S.
Airlines are already warning of higher ticket prices, while central banks are reassessing interest rate decisions amid rising inflation risks.
The conflict is now being seen not just as a regional war—but as a global economic threat.
Volatility surged across major indices as uncertainty gripped financial markets.
Markets Enter “Panic Mode”
Financial markets have already begun reacting sharply to the uncertainty.
Major indices across Asia and Europe have fallen, while volatility has surged as investors respond to the rapidly evolving crisis.
Economists warn that continued escalation could lead to:
sustained high energy prices
increased inflation globally
pressure on consumer spending
potential recession risks
A Conflict With Global Consequences
What began as targeted military strikes is now reshaping the global energy landscape.
With key production sites damaged, supply chains disrupted, and geopolitical tensions rising, the Iran-Israel conflict is no longer confined to the region—it is now impacting economies worldwide.
And as long as energy infrastructure remains in the crosshairs, markets are likely to remain volatile, with no clear end in sight.
Sources: BBC, AP News, The Guardian, CNBC