Wall Street Breakfast War shock sends oil up
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Mar 2, 2026 Oil surges to multi-year highs after Strait of Hormuz disruptions rattle global supply. Markets worry whether shipping will resume or a prolonged shock will unfold. Gold climbs above $5,400 as safe-haven flows pick up and central bank demand is noted. FedEx halts services in five Gulf countries, raising logistics and airline disruption concerns.
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Oil Jumps After Hormuz Disruption
- Crude oil spiked to multiyear highs after the U.S.-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz.
- Brent rose ~8% near $79 and WTI climbed to $72 as traders weigh shipping resumption versus a sustained oil shock.
Citigroup Near Term Oil Range
- Citi analysts expect Brent to trade between $80 and $90 in the near term if leadership shifts in Iran or de-escalation occurs within weeks.
- They warn a prolonged conflict could push prices well above that range given Iran's strategic control over regional flows.
Iran's Outsized Strategic Influence
- Iran produces ~3.3 million bpd (~3% of global output) but its position on the Strait of Hormuz gives outsized influence on flows to China, India, and Japan.
- Traders are focused on whether shipping resumes or the conflict triggers broader economic consequences.