Oil Prices Fluctuate as Israel Assists US in Reopening Strait of Hormuz

Oil prices experienced volatility on Thursday, March 19, 2026, as geopolitical tensions in the Middle East continued to impact global energy markets. Initial price surges following Iranian strikes on Qatar’s LNG export facilities were tempered by news that Israel was collaborating with the United States to ensure the continued flow of oil through the Strait of Hormuz.

Initial Price Surges and Concerns Over Supply

The price of Brent crude oil briefly surpassed $119 per barrel after Iranian strikes caused “extensive damage” to Qatar’s Ras Laffan LNG facility, raising concerns about disruptions to global gas supply . International benchmark Brent crude futures ultimately settled at $108.65 per barrel, a 1.18% increase. U.S. West Texas Intermediate (WTI) futures saw a slight decrease, closing at $96.14 per barrel.

European natural gas prices also rose sharply, with the front-month price at the Dutch Title Transfer Facility (TTF) hub increasing by over 11% to around 61 euros per megawatt-hour .

Netanyahu Announces Collaboration to Secure Strait of Hormuz

The shift in oil prices occurred after Israeli Prime Minister Benjamin Netanyahu announced that Israel was assisting the U.S. In reopening the Strait of Hormuz, a critical waterway for global oil transport . Netanyahu also claimed that Iran had lost its ability to enrich uranium and produce ballistic missiles, suggesting a potential for a quicker resolution to the conflict . He further stated that Israel was “winning” and Iran was being “decimated” .

US Response and Industry Concerns

The U.S. Government, under the Trump administration, has prioritized opening the Strait of Hormuz. Vice President JD Vance met with U.S. Oil industry representatives, hosted by the American Petroleum Institute (API), to discuss the situation. API President and CEO Mike Sommers emphasized the critical need to maintain access to the waterway, stating there was “no substitute” for it . A White House official confirmed that oil and gas export restrictions were not currently being considered .

Netanyahu Proposes Alternative Energy Routes

Beyond securing the Strait of Hormuz, Netanyahu proposed a long-term solution to bypass maritime choke points. He suggested constructing pipelines through the Arabian Peninsula to Israeli ports on the Mediterranean Sea .

Market Reactions and Currency Movements

Stock markets globally experienced declines following Netanyahu’s press conference. The Dow Jones Industrial Average fell 0.4%, the S&P 500 fell 0.3%, and the Nasdaq Composite fell 0.2%. European markets also saw significant drops, with London’s FTSE 100 falling 2.4%, Paris’ CAC 40 falling 2.0%, and Frankfurt’s DAX falling 2.8%.

Currency markets also shifted, with the euro and British pound strengthening against the U.S. Dollar, while the dollar weakened against the Japanese yen.

Looking Ahead

The situation remains fluid, and oil prices are likely to continue to be sensitive to developments in the Middle East. The success of efforts to secure the Strait of Hormuz and the potential for alternative energy routes will be key factors in determining the future of global energy markets.