Oil tops $100 a barrel, gas nears $3.50 a gallon as war widens

The price of oil surged in the early hours of March 9, and gas prices are likely to follow as the U.S.-Iran war showed no signs of easing.

Stocks plunged, bonds sold off, and Wall Street’s "fear gauge" soared as oil topped $110 amid a worsening United States-Iran war.

Brent crude, the international standard, surged to $119.50 per barrel early on Monday, March 9 but later was trading near $103 per barrel, up about 11%. West Texas Intermediate, the crude produced in the U.S., was at about $101 per barrel just before the opening bell in New York.

The 10-day-old war hit new milestones over the weekend, as Iran named Mojtaba Khamenei to succeed his father, Ali Khamenei, as supreme leader.

Oil is still unable to pass through the Strait of Hormuz, which Iran has effectively blocked. At the start of the war, many analysts had expected prices to jump this high, but most also assumed the key passageway would re-open relatively quickly, keeping the surge in prices relatively contained. So far, however, there is no sign of hostilities easing.

On Monday morning, the Financial Times reported that a group of major developed countries were planning an emergency meeting to discuss a joint release of petroleum reserves.