Oil Prices Surge: US-Iran Conflict & Middle East Tensions

March 2, 2026 Priya Shah – Business Editor Business

Oil prices surged and global markets faltered Saturday as the United States and Israel launched coordinated military operations against Iran, targeting its Supreme Leader Ali Khamenei and other senior officials, according to reports from the BBC and The Guardian. The attacks, dubbed “Epic Fury” by the US and “Lion’s Roar” by Israel, followed the collapse of nuclear negotiations between Washington and Tehran earlier in the week.

The US Central Command reported Sunday that three US service members stationed in Kuwait had been killed and five seriously injured, without releasing the names of the deceased. Several others sustained minor injuries. Iran responded with retaliatory strikes throughout the Middle East, prompting widespread concern about regional escalation. According to Iran’s Red Crescent, more than 200 people have been killed and over 700 injured across Iran. At least 165 deaths, including children, occurred in an explosion at a school in southern Iran, as reported by the state news agency Irna. A missile strike on a synagogue bomb shelter in Beit Shemesh, Israel, resulted in at least nine fatalities, according to BBC reporting from the scene. Further attacks in Tel Aviv left one person dead and at least 20 wounded, according to the Israeli newspaper Haaretz.

The attacks mark a significant escalation in the long-running Iran-Israel conflict, which has historically involved proxy warfare and covert operations. According to a Wikipedia entry on the Iran-Israel conflict, the current situation follows a pattern of conflict that includes a proxy war, conflict during the Syrian civil war in 2024 and a Twelve-Day War in 2026. The Wikipedia entry also notes previous Israeli-United States strikes on Iran.

Economists are beginning to assess the potential impact of the conflict on the global economy, with China expected to be among the countries most affected, according to Bloomberg. The disruption to shipping lanes in the Middle East has already caused a sharp increase in oil prices, impacting market trading worldwide.

The UK’s Foreign Office has initiated plans to evacuate thousands of British citizens from the Middle East, The Guardian reported. As of Sunday, no official statement had been released by Iran regarding a potential ceasefire or de-escalation.