Global Oil Price Volatility Intensifies as Persian Gulf Conflict Escalates

Global oil prices surged on Monday following a major escalation of conflict in the Persian Gulf, renewing supply fears and market volatility that directly influence the price of Bakken crude. International benchmark Brent crude jumped more than 5% to trade near $114 a barrel, while WTI crude climbed near $105, according to OilPrice.com.

The price spike followed Iranian drone strikes on the United Arab Emirates' Fujairah Oil Industrial Zone, which hospitalized three people and prompted missile alerts. The attack signified a potential collapse of a four-week ceasefire and expanded the conflict beyond the U.S., Israel, and Iran. The UAE blamed Iran for the strike, with former Israeli Prime Minister Naftali Bennett calling it "a declaration of the renewal of Iran’s war against the allies of the United States and Israel".

Concurrently, U.S. Central Command reported American forces fought off Iranian drones, missiles, and small boats in the Strait of Hormuz. Iran's news agencies claimed it had fired shots at U.S. Navy ships and "redefined the control zone" in the critical waterway. The strait has been a flashpoint since Iran effectively closed it around March 4, triggering what the IEA estimates was a 10.1 million barrel per day supply disruption in March.

This ongoing geopolitical risk has kept a high floor under global oil prices since the war began on February 28, 2026. According to OilPrice.com, Brent crude jumped from a pre-war mid-$70s price to $120 by late March, hitting $126 in April—the highest in four years. Despite the violence, President Donald Trump alluded to ongoing discussions with Iranian authorities that "could lead to something very positive," though no details were provided.

In a separate development with implications for global gas markets and U.S. energy diplomacy, the United States is making major investments in Balkan energy infrastructure. U.S. Energy Secretary Chris Wright announced a "new era of cooperation" at a forum in Croatia, according to OilPrice.com. The centerpiece is a $1.5 billion pipeline project, the Southern Interconnection between Bosnia and Croatia, which will link to the Croatian LNG terminal on Krk island—a major conduit for American LNG into Europe.

The investment is framed as a move to counter Russian influence and secure energy routes. "Energy security in Southeastern Europe is no longer a peripheral economic issue — it is a core US national security concern," said analyst David J. Kostelancik, as reported by OilPrice.com.

For Bakken operators, the renewed Persian Gulf hostilities underscore the continued fragility of global supply and the outsized role of geopolitical risk in crude pricing. While North Dakota production flows to domestic markets, the Brent and WTI benchmarks reacted sharply to the threat against UAE infrastructure and Strait of Hormuz shipping, maintaining the elevated price environment seen since March.