Oil Prices Surge as Iran Conflict Escalates

Oil and natural gas prices have risen sharply following reports of attacks on Iranian oil and gas facilities as the conflict with the United States and Israel continues. These incidents represent an escalation, marking the first time production facilities within Iran have been directly targeted.

Price Increases

Brent crude, the global oil benchmark, rose more than 4% to around $108 per barrel on Wednesday, March 16, 2026. West Texas Intermediate (WTI), the U.S. Benchmark, increased 1.7% to reach $97 per barrel. Natural gas reference prices in both Europe and Asia also saw increases exceeding 5% Gulf News.

Attacks on Iranian Facilities

Semi-official Iranian news agencies Fars and Tasnim reported that key facilities belonging to the country’s oil and gas industry, including several refineries, were struck by U.S. And Israeli strikes. Emergency services are working to contain fires resulting from the attacks. Specifically mentioned were South Pars – one of the world’s largest natural gas fields – and Asaluyeh, a hub for oil and petrochemical facilities. South Pars is a field shared with Qatar Gulf News.

Previous Attacks and Disruptions

Prior to these attacks, Israel targeted a fuel depot in Tehran, and the United States struck military infrastructure on Iran’s Kharg Island. Though, Wednesday’s attacks were the first to directly target production facilities. The ongoing conflict has disrupted shipping through the Strait of Hormuz and forced production cuts across the Gulf Gulf News.

Strait of Hormuz and Alternative Routes

The near-total closure of the Strait of Hormuz means that approximately 20 million barrels of crude oil and petroleum products – roughly one-fifth of the world’s oil supply – are currently blocked from reaching the global market. Despite this, Iraq has resumed exporting a small amount of crude oil through Turkey, bypassing the Strait of Hormuz. Pipeline exports from Kirkuk are expected to flow at a rate of 250,000 barrels per day, though this is considered a limited amount Gulf News, NBC News.

Iranian Negotiations for Safe Passage

An Iranian security source revealed that Tehran is in talks with eight countries outside the Middle East to potentially grant safe passage through the Strait of Hormuz to tankers transporting oil traded in Chinese yuan. While most oil is traded in dollars, Russian oil is an exception, being traded in rubles or yuan NBC News.

Current Market Situation

Brent crude closed Tuesday, March 15, 2026, at $103.42, its highest level since the start of the conflict. Crude oil prices have risen approximately 40% since the U.S. And Israel launched attacks on Iran on February 28, 2026 NBC News. WTI crude oil futures rose more than 2% to $96 per barrel on Tuesday, March 16, 2026, recovering from a 5.3% drop the previous day Trading Economics.

Renewed Attacks and Market Response

Oil prices rose by more than 3% on Tuesday, March 17, 2026, after renewed Iranian attacks on the United Arab Emirates rekindled supply fears. Brent crude futures gained $3.36, or 3.3%, to $103.57 a barrel, while U.S. West Texas Intermediate (WTI) crude advanced by $2.85, or 3.1%, to $95.31 Detroit News.