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OIL prices jumped sharply on Monday as the conflict between the United States, Israel, and Iran continued to disrupt crude production and shipping in the Middle East, prompting fresh concerns over global energy security.
Reuters reported that the Brent crude futures rose IS$2.30, or 2.2%, to US$105.44 a barrel, while U.S. West Texas Intermediate crude gained US$1.29, or 1.3%, to US$100 a barrel by 09:03 GMT.
Both benchmarks have surged more than 40% this month, marking their highest levels since 2022, as Tehran halted shipping through the Strait of Hormuz in response to U.S.-Israeli strikes.
The strait, a crucial artery for energy shipments, channels around a fifth of global oil and liquefied natural gas supplies.
Operations at the UAE’s Fujairah port were suspended on Monday following a drone strike that sparked a fire in the emirate’s petroleum industrial zone. Fujairah serves as the outlet for approximately 1 million barrels per day of Murban crude, representing about 1% of global demand.
The International Energy Agency has described the ongoing war as causing the “largest oil supply disruption in history,” with major producers including Saudi Arabia, Iraq, and the UAE reducing output due to regional instability.
Analysts warn that if even two weeks of disruption at the Strait of Hormuz can inflict such damage, a prolonged conflict could have severe consequences, particularly as global oil inventories continue to dwindle.
Tamas Varga of PVM said, “Investors seem to recognise that if just two weeks of disruption at the Strait of Hormuz have inflicted this level of damage on production, exports and refining, the consequences of a prolonged conflict would be severe.”
Over the weekend, U.S. forces struck military targets on Iran’s Kharg Island, the hub for roughly 90% of the country’s oil exports.
While the strikes targeted military infrastructure rather than energy facilities, ING analysts noted that any interruption poses immediate supply risks given the limited flow of Iranian oil through the strait.
U.S. President Donald Trump warned of further attacks on Kharg Island, triggering additional retaliatory measures from Tehran.
Trump also said that Washington is in discussions with other countries to help secure the strait. “I am demanding that other countries help to protect the key energy route,” he said on Sunday.
He confirmed that the U.S. remains in contact with Iran, but expressed scepticism over Tehran’s willingness to engage in serious negotiations to end the conflict.
The International Energy Agency announced that more than 400 million barrels of oil reserves will soon be released to the market to mitigate price spikes.
Stocks from Asia and Oceania will be deployed immediately, while European and American reserves will be available by the end of March.
“As the conflict enters its third week, the lack of a clear denouement has left global markets increasingly worried about an uncontrollable escalatory spiral,” said SEB analyst Meyersson.
U.S. Energy Secretary Chris Wright, however, expressed cautious optimism, suggesting that the conflict could end “within the next few weeks,” with oil supplies and energy costs returning to normal thereafter. - March 16, 2026
