Surge in Global Oil Prices Amid Rising Tensions in the Persian Gulf

Global oil prices have surged following US military strikes on Kharg Island, escalating tensions in the Persian Gulf. As the conflict intensifies, crude oil futures have risen significantly, with Brent crude reaching notable highs. The situation has prompted the US to enhance naval security in the region, urging allies to assist in safeguarding vital shipping routes. This escalation marks a critical moment in the ongoing conflict, with implications for global oil supply and market stability. Read on to explore the full impact of these developments.

By Narendra Chaudhary Mar 16, 2026, 13:22 IST

Escalation of Conflict Affects Oil Markets

New Delhi, March 16: On Monday, global oil prices experienced an uptick following military strikes by the United States on Kharg Island, intensifying the ongoing conflict in the Persian Gulf as it enters its third week.

By approximately 9:45 am, crude oil futures, particularly the US benchmark West Texas Intermediate (WTI), rose by 3.77% to reach $102.44. Meanwhile, Brent crude, the international standard, was priced at $104.79, reflecting a 1.59% increase from the previous close.

This increase in oil prices was triggered by Iran's retaliatory actions against Israel and several Arab nations after the US targeted military installations on Kharg Island, a crucial hub for Iran's crude oil exports.

US President Donald Trump issued a warning that Iran's energy infrastructure on the island, which accounts for about 90% of the nation’s oil exports, could be subjected to further strikes if Tehran disrupts shipping routes through the Strait of Hormuz.

Trump emphasized the need for international cooperation to secure this vital maritime route that connects Persian Gulf oil and gas supplies to global markets.

Reports indicate that Washington has urged major oil-importing nations like China and Japan to send naval forces to the Strait to safeguard tanker movements. Approximately one-fifth of the world's oil shipments and significant amounts of liquefied natural gas transit through this critical waterway.

Additionally, the US has directed the Navy’s Fifth Fleet to escort commercial vessels in the area to prevent potential Iranian assaults.

The attack on Kharg Island signifies a further escalation in the ongoing conflict, which the International Energy Agency (IEA) states has already led to the most significant supply disruption in the history of the global oil market. Shipping traffic through the Strait of Hormuz has largely come to a standstill as hostilities have escalated.

In related news, the United Arab Emirates resumed loading operations at the Port of Fujairah, a key export hub, on Sunday, following a drone strike that temporarily halted shipments from the country’s main export route while the strait remained obstructed.

Last week, Brent crude prices surged nearly 11%, reaching a peak of $119.50 per barrel, levels not seen since the onset of Russia’s invasion of Ukraine, before settling just above $103 per barrel.