Mar 16, 2026
Oil prices increase as attention shifts back to risks facing Middle East export facilities.
Oil prices increased on Monday as investors shifted their attention back to the threats to oil facilities in the Middle East, despite U.S. President Donald Trump urging countries to assist in protecting the Strait of Hormuz, a crucial route for global energy transport.
Brent crude futures rose by $2.73, or 2.7%, reaching $105.87 a barrel by 0730 GMT, following a $2.68 gain on Friday. U.S. West Texas Intermediate crude also gained, climbing $1.65, or 1.7%, to $100.36 a barrel, after a nearly $3 increase in the previous session.
Both crude oil contracts have surged over 40% this month, reaching their highest levels since 2022, following U.S.-Israeli strikes on Iran that led Tehran to halt shipping through the Strait of Hormuz, cutting off a significant portion of the global oil supply in a historic disruption. ING commodity strategists noted on Monday that U.S. strikes on Kharg Island raised concerns about supply since most of Iran's oil exports pass through there.
Although the strikes primarily targeted military rather than energy infrastructure, they still present supply risks, as Iranian oil is currently the only oil passing through the Strait of Hormuz, ING added. Over the weekend, Trump threatened additional strikes on Iran's Kharg Island, which accounts for about 90% of its exports, following military strikes aimed at provoking further retaliation from Tehran.
Iranian drones attacked a major oil terminal in Fujairah in the United Arab Emirates shortly after the strikes on Kharg. While oil loading operations in Fujairah have reportedly resumed, four sources indicated it remains uncertain if they are back to normal levels. Fujairah, located outside the Strait of Hormuz, serves as the outlet for around 1 million barrels per day of the UAE's Murban crude oil, representing about 1% of global demand.
According to SEB analyst Erik Meyersson, the U.S. is considering high-risk ground options, including raiding nuclear sites for Iran's enriched uranium, seizing the Kharg Island oil hub, and possibly occupying southern Iran to secure the Strait of Hormuz. These actions would signify a major escalation and entail a willingness to accept significantly higher risks.
On Sunday, Trump stated that he was insisting other nations assist in safeguarding the critical energy route and mentioned that Washington was in discussions with several countries regarding its policing. He also noted that the U.S. is in contact with Iran but expressed skepticism about Tehran's readiness for serious negotiations to resolve the conflict.
On the same day, the International Energy Agency announced that over 400 million barrels of oil reserves would soon be released into the market, a record draw aimed at addressing price spikes resulting from the conflict in the Middle East. Reserves from Asian and Oceanian countries will be released immediately, while those from Europe and the Americas will be available by the end of March.
As the conflict enters its third week, SEB’s Meyersson remarked that the absence of a clear resolution has left global markets increasingly anxious about an uncontrollable escalation. Nonetheless, U.S. Energy Secretary Chris Wright expressed optimism on Sunday, predicting that the war would conclude within "the next few weeks," leading to a rebound in oil supplies and a subsequent decrease in energy costs.
Brent crude futures rose by $2.73, or 2.7%, reaching $105.87 a barrel by 0730 GMT, following a $2.68 gain on Friday. U.S. West Texas Intermediate crude also gained, climbing $1.65, or 1.7%, to $100.36 a barrel, after a nearly $3 increase in the previous session.
Both crude oil contracts have surged over 40% this month, reaching their highest levels since 2022, following U.S.-Israeli strikes on Iran that led Tehran to halt shipping through the Strait of Hormuz, cutting off a significant portion of the global oil supply in a historic disruption. ING commodity strategists noted on Monday that U.S. strikes on Kharg Island raised concerns about supply since most of Iran's oil exports pass through there.
Although the strikes primarily targeted military rather than energy infrastructure, they still present supply risks, as Iranian oil is currently the only oil passing through the Strait of Hormuz, ING added. Over the weekend, Trump threatened additional strikes on Iran's Kharg Island, which accounts for about 90% of its exports, following military strikes aimed at provoking further retaliation from Tehran.
Iranian drones attacked a major oil terminal in Fujairah in the United Arab Emirates shortly after the strikes on Kharg. While oil loading operations in Fujairah have reportedly resumed, four sources indicated it remains uncertain if they are back to normal levels. Fujairah, located outside the Strait of Hormuz, serves as the outlet for around 1 million barrels per day of the UAE's Murban crude oil, representing about 1% of global demand.
According to SEB analyst Erik Meyersson, the U.S. is considering high-risk ground options, including raiding nuclear sites for Iran's enriched uranium, seizing the Kharg Island oil hub, and possibly occupying southern Iran to secure the Strait of Hormuz. These actions would signify a major escalation and entail a willingness to accept significantly higher risks.
On Sunday, Trump stated that he was insisting other nations assist in safeguarding the critical energy route and mentioned that Washington was in discussions with several countries regarding its policing. He also noted that the U.S. is in contact with Iran but expressed skepticism about Tehran's readiness for serious negotiations to resolve the conflict.
On the same day, the International Energy Agency announced that over 400 million barrels of oil reserves would soon be released into the market, a record draw aimed at addressing price spikes resulting from the conflict in the Middle East. Reserves from Asian and Oceanian countries will be released immediately, while those from Europe and the Americas will be available by the end of March.
As the conflict enters its third week, SEB’s Meyersson remarked that the absence of a clear resolution has left global markets increasingly anxious about an uncontrollable escalation. Nonetheless, U.S. Energy Secretary Chris Wright expressed optimism on Sunday, predicting that the war would conclude within "the next few weeks," leading to a rebound in oil supplies and a subsequent decrease in energy costs.