Global oil prices surged on 1 March as Iran continued launching strikes across the Middle East amid escalating conflict with the United States and Israel. Brent crude, the global benchmark, jumped by 10 percent to over $82 per barrel following attacks on at least three ships near the Strait of Hormuz, a strategic 38-kilometre passage that carries around one-fifth of the world’s oil supply—approximately 20 million barrels per day.
The price spike intensified after Iran warned that the Strait of Hormuz was closed to navigation, causing oil, gas, and other shipments to halt and forcing hundreds of vessels to anchor. With exports disrupted, oil-producing countries face difficulties supplying global markets. In response, OPEC+ agreed to increase oil production by 206,000 barrels per day next month in an effort to stabilise markets amid the regional disruption.
Energy analysts caution that prolonged closure or instability in the Strait could drive prices significantly higher, potentially exceeding $100 per barrel if flows are not quickly restored. Some Middle Eastern producers may attempt to reroute exports through alternative channels such as the East-West pipeline to the Red Sea, while Iraq could increase supplies to the Mediterranean. However, experts note that boosting production elsewhere is not an immediate solution, as ramping up output requires time and operational adjustments.
OPEC, founded in 1960 to coordinate petroleum policies and stabilise prices, later expanded in 2016 into OPEC+, a coalition that includes major non-OPEC exporters such as Russia. Together, the group accounts for more than 40 percent of global oil production and has historically adjusted output during times of geopolitical crisis to manage supply shocks.
The renewed volatility has intensified calls for accelerating the transition to renewable energy. Environmental advocates argue that reliance on fossil fuels leaves global peace, security, and economic stability vulnerable to geopolitical tensions. While increasing oil production may temporarily ease price pressures, critics contend that it does not resolve the deeper structural risks tied to fossil fuel dependence.
Campaigners stress that shifting toward renewable energy could provide countries with more stable, domestically produced power, less exposed to conflict-driven disruptions. They warn that continued dependence on oil and gas not only fuels price spikes and inflation but also reinforces a global energy system shaped by instability and geopolitical risk.
