Jonathan Leake, Energy Editor.Matt Oliver, Industry Editor.Akhtar Makoii.
08 March 2026 11:37pm GMT
Donald Trump claimed surging oil prices were “a small price to pay” for the eradication of Iran’s nuclear programme as the price of crude blew through $100 for the first time in four years.
The US president, posting on his Truth Social platform, said on Sunday that prices would fall again once the conflict was over as the crisis entered its 10th day.
But analysts warned that the surge in oil prices – which have now doubled in just three months – threatened to send petrol costs soaring for drivers in America and Europe.
Mr Trump wrote: “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay U.S.A., and World, Safety and Peace.
“ONLY FOOLS WOULD THINK DIFFERENTLY!”
His remarks came minutes after the price of crude on Sunday evening blew past a landmark it last exceeded during the invasion of Ukraine. Brent crude hit $118 per barrel, an increase of more than a fifth since Friday alone.
Fears of inflation have gripped markets with the critical Strait of Hormuz disrupted for nine days so far. A quarter of global oil and gas supply depends on the narrow waterway.
The dollar also strengthened against the euro and sterling, which fell 0.77pc and 0.85pc respectively, as traders fled to safe-haven assets.
On Sunday, the US energy secretary Chris Wright said the disruption was likely to last for weeks. He said one tanker had transited the Strait of Hormuz this weekend, compared with scores on a normal day.
Emmanuel Macron on Sunday became the first Western leader to appeal directly to the president of Iran to reopen the Strait of Hormuz.
Traders had previously predicted the oil price would leap from the $92 it ended on Friday, as the threat of a prolonged shutdown increased.
Wall Street analysts at Goldman Sachs, one of the world’s largest investment banks, separately warned over the weekend that oil could hit around $150 per barrel if the crisis hadn’t receded by the end of this month.
Chris Wright
Chris Wright, the US energy secretary, says the disruption will likely last for weeksCredit: Rebecca Blackwell/Reuters
It means the cost of filling a family car with petrol also risks rising above the £100 mark for the first time since the invasion of Ukraine.
In extreme and unprecedented scenarios, some oil traders have warned that the price of crude could soar to as much as $250 per barrel.
