Oil Hits $110 as Israel Strikes Iran During Persian New Year

Oil prices surged Wednesday after Israeli strikes targeted Iranian energy infrastructure during the Persian New Year, raising concerns that supply disruptions could persist for months or even years.

The conflict, now entering its third week, has damaged key oil and gas facilities and effectively shut the Strait of Hormuz, a critical chokepoint that handles nearly one-fifth of the world’s oil exports. The disruption sent crude prices climbing to around $110 per barrel.

In the United States, the increase pushed the national average price for a gallon of regular gasoline up 3 cents, marking the highest level since October 2022. Analysts warn that continued conflict and damage to infrastructure could keep energy prices elevated for the foreseeable future.

“This isn’t just a short-term spike,” said energy analysts at Goldman Sachs. “Supply disruptions in the Gulf, coupled with shipping risks, could keep oil prices high for years.”

The international community is closely monitoring the situation as tensions in the region threaten global energy markets and could have broader economic impacts worldwide.