Crude Oil Prices Top $100 As Iran War And Strait Of Hormuz Disruption Hit Supply

Global oil prices rose sharply on Thursday as concerns about supply disruptions in the Middle East continued to grow.

West Texas Intermediate (WTI) crude futures briefly crossed the $95 per barrel mark before trimming some of the gains later in the day. The rise marked the second straight session of increases in oil prices.

The surge came even after major economies agreed to release large amounts of oil from emergency reserves in an attempt to stabilise global energy markets.

According to market data, crude oil was trading at about $92.69 per barrel on March 12, 2026. This was a 6.23 per cent increase compared with the previous day. Brent prices briefly crossed the $100 per barrel mark, reaching a peak of $101.59.

Over the past month, oil prices have climbed sharply by around 47.38 per cent. Compared with the same time last year, crude oil is now about 39.27 per cent higher.

The main reason behind the rise in oil prices is the ongoing conflict involving Iran and the wider Middle East.

Recent developments have raised serious concerns about the safety of global oil supplies.

Iraq halted operations at its oil terminals after two oil tankers were targeted in Iraqi waters. The incident has increased worries that more attacks on energy infrastructure could happen in the region.

At the same time, Iran reportedly told intermediaries that it would consider a ceasefire only if the United States guarantees that neither it nor Israel would attack the country again in the future.

However, such a guarantee is considered unlikely, which means tensions could continue.

One of the biggest concerns for global oil markets is the situation in the Strait of Hormuz.

This narrow sea route is one of the most important energy shipping lanes in the world. Around one fifth of the world’s crude oil passes through it.

Reports say the strait has been effectively shut after several commercial vessels were struck off the coast of Iran.

Because of the risk to ships, many oil producers in the Middle East have reduced output. This has tightened global oil supply even further.

The closure of the Strait of Hormuz has therefore become a major factor pushing prices higher.

In an attempt to control the situation, the International Energy Agency (IEA) approved the largest emergency oil release in its history.

Member countries agreed to release 400 million barrels of oil from their strategic reserves.

The move is aimed at increasing supply in the market and calming fears about shortages.

However, despite this huge release, oil prices continued to rise because traders remain worried about the long-term impact of the conflict.

The IEA said the war in the Middle East is creating the biggest disruption to the global oil market ever recorded.

Global oil production falls sharply

The conflict has also reduced global oil production.

According to the IEA’s latest market report, daily global crude production has fallen by at least eight million barrels.

An additional two million barrels related to petroleum products have also been shut off.

The Gulf region has been hit particularly hard. Combined oil production from Gulf countries has dropped by at least ten million barrels per day.

The release of strategic reserves by IEA members is roughly equal to about twenty days of oil supply that normally passes through the Strait of Hormuz.

Brent North Sea crude, the global benchmark for oil prices, also surged during Thursday’s trading.

Prices briefly crossed the $100 per barrel mark, reaching a peak of $101.59.

Later in the session, Brent prices eased slightly but still remained high at around $97 per barrel.

Even after the slight drop, prices are much higher than before the conflict began nearly two weeks ago.

Market experts warn that if oil prices remain high for a long time, it could lead to higher inflation and slower economic growth around the world.

Impact spreads to airlines and fuel costs

The rise in oil prices is already affecting several industries, especially airlines.

New Zealand’s national airline announced it will cancel around 1,100 flights over the next two months due to higher fuel costs.

Hong Kong’s Cathay Pacific has also announced new jet fuel surcharges on many routes. These additional charges will roughly double the current fuel costs paid by passengers.

Such moves show how rising oil prices can quickly increase the cost of travel and transport.

The impact of rising oil prices and the Middle East conflict is also visible in global financial markets.

Many major stock markets ended the day slightly lower.

In London, the FTSE 100 index fell 0.4 per cent to 10,311 points.

Paris’s CAC 40 index dropped 0.5 per cent, while Germany’s DAX index slipped 0.1 per cent.

Asian markets also closed lower. Tokyo’s Nikkei index fell by 1 per cent, while Hong Kong’s Hang Seng dropped 0.7 per cent. Shanghai’s composite index edged down by 0.1 per cent.

In the United States, the Dow Jones index declined 0.6 per cent.

Analysts say airline companies have been among the biggest losers, while oil companies and defence firms have benefited from the conflict.

The conflict has also influenced global currency markets. The US dollar strengthened slightly as investors moved towards safer assets during the uncertainty.

The euro traded at around $1.1556 against the dollar, while the British pound stood near $1.3390.

The Japanese yen traded around 158.74 per dollar.

Market experts say fears of inflation and the possibility of higher interest rates are also supporting the US dollar.

Economic risks remain if conflict continues

Analysts warn that the longer oil prices stay high, the greater the risk to the global economy.

High energy prices can increase inflation, raise transport costs, and slow economic growth.

Experts say the situation will largely depend on whether tensions in the Middle East ease or continue in the coming weeks.

For now, global markets remain focused on developments in the region and their possible impact on energy supplies.

(With AFP inputs)