Oil prices went up more than 2% on Tuesday, March 17, 2026. This happened one day after prices dropped a lot. The change is because of the problem in the Middle East. The Strait of Hormuz is still closed for commercial ships.
By early afternoon, Brent crude futures went up by $2.74. The price was $102.95 per barrel. U.S. West Texas Intermediate crude also went up by $2.45. Its price was $95.95. The market is not steady. The U.S.-Israeli war on Iran has lasted three weeks.
The Choke on Global Supply
About 20% of the world’s oil and gas moves through the Strait of Hormuz. It is very important for energy worldwide. But things changed fast after Iranian paramilitary groups used drones to attack and placed mines underwater. Big shipping companies stopped using this route. They did not want to risk their crews or cargo.
Now, if you look at ship data, you will see fewer than ten ships cross the strait each day. This is a big drop. In February, there were ten times more ships. The blockade made big oil producers like the United Arab Emirates and Kuwait lower how much oil they make. Their storage tanks are full. They have no more space to keep oil.
The UAE, which is OPEC’s third-biggest producer, had to cut its output by more than half since it couldn’t get its crude out to the global markets.
More News: White House Seeks Coalition on Iran to Ease Energy Crisis
Geopolitical Friction and Escalation
Tensions in the market keep climbing, partly because the United States is drifting apart from its usual allies. On Monday, President Trump openly pushed NATO members and Asian allies to send warships and help protect tankers in the Gulf. But Germany, Italy, and some other European countries just aren’t going for it. They’re worried about getting dragged straight into a fight with Tehran.
Without everyone on the same page, the shipping industry feels stuck and uncertain. “The risks are still very real,” said Tony Sycamore, a market analyst at IG. “One missile or one mine could set off a panic all over again. Right now, the market is watching how long this blockade will last and whether Gulf energy infrastructure faces lasting damage.”
Emergency Measures and Economic Outlook
To keep prices from spiralling and get a handle on inflation, the International Energy Agency just approved an unprecedented emergency release of 400 million barrels from strategic oil reserves. It has helped keep Brent from shooting past $150 for now.
But experts say this fix isn’t likely to last. Economists at Bank of America and Standard Chartered have already increased their forecasts for oil prices in 2026. If the Strait stays shut into the next quarter, they say Brent could increase above $120, which is bad news for the global economy and will mean higher gas prices everywhere, from Mumbai all the way to Munich.
