Crude oil prices jump 8%, gold rises 2% on Monday, March 2, amid Middle East tensions; OPEC+ boosts production

The oil prices spiked as the US and Israeli attacks on Iran and retaliatory strikes against Israel and US military installations around the Gulf sent disruptions through the global energy supply chain.

The conflict, following the death of Iranian Supreme Leader Ayatollah Ali Khamenei, has raised concerns over energy supplies.

Oil futures surged more than 8%, with West Texas Intermediate (WTI) crude last trading at $72.52 per barrel and Brent crude at $79.04 per barrel.

OPEC+ boosts oil production

Amid the geopolitical tensions, eight countries that are part of the OPEC+ oil group announced Sunday they will boost production of crude.

The Organisation of the Petroleum Exporting Countries (OPEC), in a Sunday meeting planned before the war began, said it would increase production by 206,000 barrels per day in April, which was more than analysts had expected. The countries boosting output include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.

Attacks throughout the region, including on two vessels travelling through the Strait of Hormuz, the narrow mouth of the Persian Gulf, could restrict countries' ability to export oil to the rest of the world. That will likely result in higher prices for crude oil and gasoline, according to energy experts.

Around 15 million barrels of crude oil per day — nearly 20% of global supply — pass through the Strait of Hormuz, making it the world’s most critical oil chokepoint, according to Rystad Energy. The narrow waterway, bordered to the north by Iran, is a key transit route for oil and gas exports from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE, and Iran.

Iran had temporarily closed parts of the strait in mid-February, citing military drills. Any further disruption to this vital shipping corridor could tighten global supplies and push oil prices higher.

Bullion update

In the metals space, gold futures jumped 2.3% as investors piled into the global safe haven.

Bullion, traditionally regarded as a safe-haven asset, has already scaled multiple record highs this year amid elevated global political and economic uncertainty.

The current rally follows a sharp 64% gain in 2025, fuelled by sustained central bank purchases, strong inflows into exchange-traded funds, and growing expectations of monetary easing in the United States.