Oil prices set for swings next week as US-Israel strikes raise supply uncertainty

March 1, 2026 - 01:34

Financial markets are closed for the weekend, but analysts are already forecasting significant price swings for crude oil in the coming week. This anticipated volatility stems from the uncertain impact of recent U.S. and Israeli military strikes on Middle Eastern oil supplies. The situation has injected a fresh layer of risk into global energy markets, with the full consequences for regional production and infrastructure still being assessed.

Prior to this escalation, many energy observers predicted that any price spike following an attack would be short-lived, provided critical shipping lanes and Iranian oil infrastructure—including pipelines and the key Kharg Island terminal—remained unaffected. However, the direct strikes have heightened geopolitical tensions, overriding those earlier models. Oil prices had already climbed in recent sessions on mounting fears of a broader regional conflict, setting the stage for a turbulent opening when trading resumes.

The core uncertainty now lies in whether the conflict will materially disrupt the physical flow of oil. Traders and governments worldwide will be closely monitoring the security of the Strait of Hormuz and the operational status of major export facilities. Any sign of sustained disruption to shipments from the region would likely trigger a sharp and sustained price increase, adding pressure to the global economy. The coming days will be critical in determining whether the market faces a temporary shock or a more fundamental supply crisis.