Oil Prices Surge Sharply Amid Escalating Middle East Tensions

Global oil prices jumped significantly in trading on March 12, 2026, driven by heightened geopolitical risks in the Middle East following recent attacks on oil tankers near key export areas and persistent threats to disrupt shipping through the critical Strait of Hormuz.

West Texas Intermediate (WTI) crude futures for April delivery traded around $94 to $95 per barrel, posting gains of approximately 7 to 9 percent in recent sessions, with intraday ranges extending from about $88.89 to $95.96. Brent crude, the international benchmark, hovered near $99 to $101 per barrel for May settlement, rising roughly 8 to 9 percent or more, with levels reported as high as $100.84 in some feeds.

The sharp upward moves follow earlier volatility this week, when prices briefly spiked toward $119 per barrel after reports of strikes on Iranian facilities and related retaliatory actions, before partial retreats amid discussions of emergency stockpile releases and mixed diplomatic signals.

The rally stems from attacks on multiple foreign oil tankers in the Gulf region, including incidents in Iraqi waters and the Strait of Hormuz where at least three ships were struck, some set ablaze or hit by projectiles. These events have disrupted flows from major export hubs, anchored hundreds of vessels outside the strait, and driven up war risk insurance premiums dramatically. Iran’s warnings of potential severe restrictions or closure in the Strait of Hormuz, a vital chokepoint for roughly one-fifth of global oil supply, have intensified supply fear premiums.

Broader escalation in the U.S.-Israeli conflict with Iran, including ongoing strikes and retaliatory hits, continues to raise concerns over sustained supply constraints that could amount to millions of barrels per day in extreme scenarios. Some analysts have warned of risks pushing prices toward $150 or higher if disruptions persist, though moderating factors like coordinated releases from strategic reserves or potential diplomatic efforts could temper the surge.