Crude Oil prices rose more than 2% on Tuesday, March 17, 2026, following a sharp drop the previous day. The surge is linked to ongoing disruptions in the Middle East, with the Strait of Hormuz still closed to commercial shipping.
By early afternoon, Brent crude futures had climbed $2.74 to $102.95 per barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.45 to $95.95 per barrel. The market remains volatile as the U.S.-Israeli conflict with Iran enters its third week.
The Strait of Hormuz is a crucial global energy route, handling about 20% of the world’s oil and gas shipments. The recent blockade, caused by Iranian paramilitary drone attacks and underwater mines, has drastically reduced vessel traffic. Ship data shows fewer than ten vessels crossing daily, compared with ten times that number in February.
The disruption has forced major oil producers such as the United Arab Emirates and Kuwait to cut production, as storage facilities reach capacity. The UAE, OPEC’s third-largest producer, has halved its output to prevent overstocking.
Tensions are further heightened by the lack of consensus among U.S. allies. While President Donald Trump urged NATO and Asian partners to deploy warships to protect tankers, countries like Germany and Italy have hesitated, citing fears of escalation with Iran.
Market analysts, including Tony Sycamore of IG, warn of ongoing risks: “One missile or one mine could set off a panic all over again. The market is watching how long this blockade will last and whether Gulf energy infrastructure faces lasting damage.”
The International Energy Agency has released 400 million barrels from strategic reserves to stabilize prices temporarily. However, economists at Bank of America and Standard Chartered have already revised 2026 forecasts upward, predicting Brent crude could surpass $120 per barrel if the Strait remains closed, potentially driving global fuel prices higher.
