Oil Prices Surge Past $106 as Strait of Hormuz Remains Blocked, Trump Seeks Coalition

Brent crude oil prices topped $106 a barrel on Monday, March 16, 2026, as the effective closure of the Strait of Hormuz continues with no clear resolution in sight. The surge comes as U.S. President Donald Trump calls for an international coalition to reopen the critical waterway, a proposal met with a muted response from key global powers.

Strait of Hormuz Disruption

The disruption to shipping through the Strait of Hormuz, which handles approximately one-fifth of the world’s oil supply, began after U.S. And Israeli strikes on Iran on February 28, 2026. Iran has retaliated by bringing shipping in the strait to a standstill, resulting in what the International Energy Agency (IEA) has described as the largest disruption to global energy supplies in history Al Jazeera.

Currently, no more than five ships are passing through the strait each day, a drastic decrease from the historical average of 138 daily transits Al Jazeera. At least 16 commercial vessels have been attacked in the region since the start of the conflict Al Jazeera.

Trump’s Coalition Proposal

President Trump has urged countries including China, Japan, France, and the UK to assist Washington in securing the Strait of Hormuz. He warned that NATO would face a “very disappointing” future if his proposal is rejected Al Jazeera. However, as of Monday, March 16, 2026, none of these nations have publicly committed to deploying their navies to the region. Both Japan and Australia have stated they have no current plans to send ships to the waterway Al Jazeera.

Oil Price Impact and IEA Response

Brent crude rose as much as 3 percent on Sunday, reaching over $106 a barrel, before settling at $104.63 a barrel as of 04:30 GMT, a 1.5 percent increase Al Jazeera. Global oil prices have increased by more than 40 percent since the beginning of the conflict.

The IEA previously released 400 million barrels of oil from emergency reserves in an attempt to cushion the impact of the disruption, the largest coordinated drawdown in the agency’s history Al Jazeera. However, this release has not significantly lowered prices. The IEA had also released about 182 million barrels after Russia’s invasion of Ukraine to stabilize oil prices Al Jazeera.

Oil shipments through the Strait of Hormuz have fallen to less than 10 percent of pre-war levels, threatening a critical artery in the global energy system Al Jazeera.

Looking Ahead

The situation remains volatile, and outcomes depend on the duration of the disruption and the willingness of international actors to intervene. The continued blockage of the Strait of Hormuz poses a significant risk to the global economy, potentially leading to a slowdown as fuel prices rise Al Jazeera.