US Oil Prices in Spotlight Again as Iran War Extends Three Weeks of Energy Chaos

US oil prices are in the spotlight again as the Iran war extends three weeks of energy chaos with no clear end point in sight, and Monday is expected to bring another turbulent session. Analyst Patrick De Haan has placed his Monday forecast at $3.80 to $3.85 per gallon, while $4 gasoline remains within reach. Three weeks of military conflict have created a level of energy market chaos that is increasingly difficult to manage.
The chaos began on February 28 when US and Israeli forces launched strikes on Iran, triggering a chain of events that has progressively disrupted global oil supply. From below $3 per gallon before the war, the national average has risen 23% to $3.70, reflecting the combined impact of infrastructure strikes and shipping blockades on available petroleum supply. The chaos in energy markets has rippled out to affect businesses and consumers across the economy.
The US strike on Kharg Island on Friday, targeting Iran’s central oil export facility, added a significant new element to the ongoing supply chaos. Iran’s blockade of the Strait of Hormuz, which normally handles roughly one-fifth of global oil supply, continues to deny international buyers access to a critical shipping corridor. Brent crude fluctuated between $103 and $106 per barrel Monday, while US crude held near $94 following a brief surge to $100 on Sunday.
California is at the epicenter of the domestic price chaos, with state averages above $5 per gallon and some Los Angeles stations charging over $8. Diesel for commercial freight could reach $5.15 per gallon nationally. Oil company executives from Exxon, Conoco, and Chevron have each briefed White House officials on the worsening supply picture, with Exxon’s Darren Woods warning specifically that speculative trading risks amplifying the chaos further.
Wall Street found modest footing Monday as crude prices briefly retreated, the S&P 500 gaining approximately 1% in early trading. Oil sector shares have reached record highs since the conflict began. The energy market chaos will remain in the spotlight for as long as the Iran conflict continues, and American consumers will continue to pay the price at every gas station across the country.