Crude Oil Prices Rise Over 40% In March As U.S.-Iran Conflict Disrupts Global Supply

Global crude oil prices continued to climb on March 16 as escalating tensions involving the United States and Iran raised concerns about disruptions to energy infrastructure and shipping routes in the Middle East, according to Reuters.

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Benchmark Brent crude futures rose $1.27, or 1.2%, to $104.41 per barrel after gaining $2.68 in the previous trading session. Meanwhile, West Texas Intermediate crude increased by 54 cents, or 0.6%, to $99.25 per barrel after rising nearly $3 in the prior session.

Both global benchmarks have surged more than 40% during March, reaching their highest levels since 2022.

Strait Of Hormuz Disruption Drives Supply Concerns

The price rally follows military strikes involving the United States and Israel against Iranian targets, after which Tehran suspended shipping activity through the Strait of Hormuz.

The Strait of Hormuz is a key global oil transit route and carries nearly one-fifth of the world’s oil supply. The disruption of shipping in the area has heightened supply worries in the international energy market.

The situation has been characterized as one of the biggest supply shocks in recent years owing to the magnitude of oil shipments that pass through the strait.

MCX Crude Oil Prices Track Global Rally

Domestic crude oil futures also moved higher in India in line with global trends.

Crude oil prices on the Multi Commodity Exchange of India were trading 1.90% higher at ₹9,227 per barrel.

The movement in domestic futures reflects the influence of international crude benchmarks on commodity markets in India.

Energy Infrastructure And Shipping Developments

According to Reuters, the recent escalation followed warnings by U.S. President Donald Trump about potential additional strikes on Kharg Island, which handles around 90% of Iran’s oil exports.

Soon after the earlier attacks on Kharg Island, Iranian drones struck an oil terminal in Fujairah in the United Arab Emirates.

Fujairah functions as a major export hub for the UAE’s Murban crude and handles shipments of roughly 1 million barrels per day, equivalent to about 1% of global oil demand.

Reuters reported that oil loading operations at the Fujairah terminal have resumed, although the status of full operational normalcy remains uncertain.

Strategic Reserves Release

The International Energy Agency said more than 400 million barrels of oil reserves are expected to be released from member countries’ strategic reserves.

According to Reuters, the release is intended to stabilise global supply and ease price pressures caused by the conflict in the Middle East.

Oil markets are closely monitoring geopolitical developments and supply flows as disruptions to shipping and energy infrastructure continue to influence global crude prices.