Energy markets entered March 8 with severe supply and pricing disruptions as the fallout from the US attack on Iran widened, with strong jumps in crude oil prices, disrupted shipments, force majeure declarations, and production and export cuts in more than one country, company, and refinery.
On the price side, Brent crude settled on March 6 at $92.69 per barrel, up $7.28 in one day, while WTI crude closed at $90.90 per barrel, up $9.89, or 12.21%, which Reuters described as one of the biggest weekly moves since the peak of the COVID-19 pandemic. Reuters also reported that Brent surpassed $90 per barrel for the first time since April 2024, while WTI was up 35.63% and Brent was up 27%.
On the supply side, Reuters confirmed that the Kuwait Petroleum Corporation began cutting crude oil production on March 7 and declared force majeure, a move the corporation said was precautionary and subject to review depending on the development of the situation. The document seen by Reuters indicated that the decision came with the reduction of crude production and refining rates due to the conflict, while Kuwait's production in February amounted to about 2.6 million barrels per day. The notice, according to Reuters, stated that the decision was linked to explicit threats to the safety of the passage of ships through the Strait of Hormuz, the continuation of attacks on Kuwait, and the near absence of ships capable of shipping oil and products from the Persian Gulf. This is one of the clearest confirmed reports of a partial suspension or reduction in production.
The turmoil did not stop with Kuwait. Reuters reported that Iraq and Kuwait have already cut production because storage facilities are filling up quickly as shipments are disrupted, and the UAE could be next if tanker traffic continues to be blocked. It also said that Saudi Arabia, the UAE, Iraq and Kuwait have had to suspend shipments of up to 140 million barrels of oil to global refineries as the Strait of Hormuz continues to be disrupted. In the gas sector, Reuters reported that Qatar declared force majeure on its huge gas exports after drone attacks, and that returning to normal production levels may take at least a month, recalling that Qatar supplies the market with about 20% of the world's liquefied natural gas.
In Asia, the impact of the disruption was felt on the export and refining side. According to Reuters, India's Mangalore Refinery and Petrochemicals, a state-owned company, declared force majeure on gasoline export shipments, while at least two refineries in China reduced operating rates, China asked refineries to suspend fuel exports, Thailand suspended fuel exports, and Vietnam suspended crude oil shipments. These developments reflect the shift of the crisis from the Gulf to refining and trading chains in Asia.
In the U.S., the government website I checked didn't have a statement announcing an official hike in consumer fuel prices, but the market indicators quoted by Reuters were clear. The agency said retail gasoline and diesel prices jumped more than 10% during the week, as oil climbed above $90 per barrel. The national average retail gasoline price was $3.32 per gallon on Friday, up 34 cents from a week earlier, while diesel was $4.33, up from $3.76 a week earlier. The White House has asked federal agencies to step up efforts to address high energy prices, and the administration announced up to $20 billion in reinsurance in the Gulf region to support the confidence of oil and gas shippers. (Reuters, 2026a)
In the UK, the government published a fact sheet saying: International prices are changing and we are watching them. However, it is too early to say how they will be reflected in domestic prices at the pump. It added that fuel production and imports in the UK are continuing as usual, and that there is no need for drivers to break their refueling routine. This means that London has not yet confirmed a specific domestic hike, but has acknowledged that international prices are changing and the situation is being monitored (UK Government, 2026).
In Ireland, Finance Minister Simon Harris said in an official statement to the Budget Oversight Committee that oil and gas prices had risen significantly, but added that at this stage there would be no immediate pass-through to retail prices. In New Zealand, the Ministry of Foreign Affairs and Trade said in its report on the trade and economic implications of the conflict that the disruption of this vital route will lead to higher fuel prices and may cause broader inflationary pressures, while the Ministry of Business, Innovation and Employment said it is actively assessing the fuel security situation in the country after recent events in the Middle East. In Australia, the ACCC said it was closely monitoring the fuel market and said international crude prices and international refined gasoline prices have risen sharply over the past week due to the conflict.
In Iran itself, a quick review did not find a government statement posted on an official open website announcing an increase in fuel prices for consumers, but Anadolu Agency quoted Iranian state television, citing Tehran province, as saying that the quota for purchasing through personal fuel cards in the capital was reduced from 30 liters to 20 liters after the strikes on oil depots in Tehran and Alborz. This development is part of a rationing or demand management measure, not a confirmed official announcement of a price hike at the pump.
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