Oil Rises Further Above $100 As Iran War Rages
Oil Prices Climb Above $100 as Iran War Enters Third Week
Updated March 16, 2026
Global oil prices rose above $100 per barrel on Monday as the conflict involving Iran, Israel, and the United States entered its third week, heightening fears of disruptions to global energy supply.
Oil markets surged in early trading after U.S. President Donald Trump announced that American forces had carried out strikes on military targets on Kharg Island, a major export hub responsible for handling most of Iran’s crude shipments.
However, Iran’s Fars News Agency reported shortly afterwards that no oil infrastructure had been damaged in the attacks.
Strait of Hormuz Tensions
The conflict has raised serious concerns about the Strait of Hormuz, a vital shipping route for global oil supplies that has been largely disrupted since joint U.S.–Israeli operations began on February 28.
Trump urged several countries—including China, France, Japan, South Korea, and the United Kingdom—to deploy warships to help secure the waterway and ensure safe passage for oil tankers.
In a post on his Truth Social platform, he wrote that nations dependent on oil shipments through the strait should take responsibility for protecting the route, while the United States would assist.
Despite the appeal, Japan said it was not considering a maritime security operation, while Australia announced it would not deploy naval ships to the region.
Iran Rejects Negotiations
Iran’s Foreign Minister Abbas Araghchi said Tehran was not interested in negotiations with Washington, accusing the U.S. of attacking while diplomatic talks were still ongoing.
“We don’t see any reason why we should talk with Americans, because we were talking with them when they decided to attack us,” he said during an interview on Face the Nation.
However, Araghchi noted that Iran was open to discussions with other countries seeking assurances for the safe passage of their vessels through the strait.
Escalating Regional Attacks
Fighting continued across the region on Monday. Saudi Arabia reported intercepting more than 60 drones since midnight, while flights at Dubai International Airport were briefly suspended after a drone-related incident sparked a fire nearby.
Iran also accused Israel of targeting fuel depots in Tehran, warning that the attacks could pose long-term environmental and health risks for residents.
Meanwhile, U.S. economic adviser Kevin Hassett said estimates from the United States Department of Defense suggest the military operation could last up to six weeks, though it is reportedly progressing faster than expected.
Oil Markets React
The escalating conflict pushed oil prices sharply higher in global markets:
- Brent crude rose about 3%, reaching as high as $106.50 before easing to around $104 per barrel.
- West Texas Intermediate (WTI) traded just above $99 per barrel.
In response to the supply risks, the International Energy Agency (IEA) has begun releasing 400 million barrels of crude oil from strategic reserves to stabilise the global market. The release will start in Asia and Oceania before expanding to other regions.
Global Markets Under Pressure
Stock markets showed mixed reactions as investors worried that prolonged disruptions to oil supply could worsen inflation and slow economic growth.
Major Asian markets such as Tokyo, Shanghai, Sydney, Wellington, Taipei, Manila, and Jakarta recorded losses, while Hong Kong, Seoul, Singapore, Mumbai, and Bangkok posted gains.
Analysts say the key factor for markets will be how quickly shipping through the Strait of Hormuz returns to normal.
Michael Brown of Pepperstone noted that the longer the route remains disrupted, the tighter global oil supply will become, increasing prices and potentially driving global inflation higher.
Central Banks Watching Closely
Financial markets are also focusing on policy meetings scheduled this week at several major central banks, including the Federal Reserve, Bank of England, and the European Central Bank.
While interest rates are expected to remain unchanged, investors will closely watch any comments from policymakers about the war’s impact on global economic stability.