Oil prices rocket amid tanker squeeze in Hormuz Strait
War risks posed on oil tankers passing through world’s oil lifeline keep prices elevated
Oil markets remain extremely volatile amid the escalating US-Israel-Iran conflict disrupting the Strait of Hormuz – the vital artery for ~20% of global oil flows.
As of Tuesday (as of 10am GMT, March 17, 2026):
WTI crude surged to $96.15 (+2.83%, up $2.65)
Brent hit $102.91, or 2.69% higher (up $2.70)
Murban jumped nearly 7% to $114.10/barrel up $7.38, reversing a 6.68% drop to $106.70 earlier in the day.
Natural gas dipped slightly to $3.015 (-0.26%), down $0.008.
Mild weather forecasts keep Nat Gas subdued despite energy volatility.
And while some tankers attempt transits through the perilous Strait of Hormuz, risks persist, driving fears of prolonged shortages.
Key benchmarks show sharp divergence:
Louisiana Light Sweet rocketed to $97.11 (+9.98%), reflecting strong demand for US Gulf Coast light crudes as alternatives to disrupted Middle East supplies.
WTI Midland dropped to $95.85 (-4.85%) in thin trading, possibly due to logistical adjustments or profit-taking after recent surges.
OPEC Basket climbed to $126.9 (+5.00%), underscoring premium pricing for OPEC grades amid severe supply constraints from Gulf producers.
Mars (sour crude benchmark) rose to $119.3 (+2.65%), highlighting tightness in heavier grades.
Global inventories are being tapped, but limited spare capacity keeps upward pressure high.
Analysts warn of further spikes if conflict drags on, with inflation risks mounting for energy-importing nations.
Oil markets whipsaw on every headline – from convoy proposals to renewed strikes – signaling no quick resolution.
Analysts warn of prolonged spikes if disruptions linger, with Goldman Sachs already hiking Q4 forecasts. Investors expect higher peaks before any easing, as per Reuters.
