Breaking: End of Hidden War, Oil Prices Surge Again
Jakarta, CNBC Indonesia – Global crude oil contract prices surged sharply by more than 5% during trading on Tuesday, 17 March 2026. This dramatic increase was triggered by deepening market concerns over security in the Strait of Hormuz following several nations’ rejection of US President Donald Trump’s request for assistance in securing this vital passage amid Iranian attacks on neighbouring oil-producing countries.
The surge reversed sharp losses from the previous day. On Monday, prices had moderated after the International Energy Agency (IEA) chief stated that additional crude oil reserves could be released to the market if necessary to dampen supply disruptions.
However, geopolitical tensions ultimately dominated market sentiment. The two major global crude contracts, West Texas Intermediate (WTI) and Brent, both surged more than 5% above $100 per barrel before moderating slightly.
WTI spot prices reached $98.42 per barrel on Tuesday, moderating to $97.36 per barrel by 3:50 PM Jakarta time, whilst Brent touched $104.98 per barrel before declining to $103.87 per barrel.
President Donald Trump had previously called on European and other regional allies to assist in reopening the Strait of Hormuz, which has effectively been closed by Iran. Trump emphasised over the weekend that securing this waterway should always be a team effort, and that it would now become reality.
Trump’s efforts, however, received a cool response from US allies. German Chancellor Friedrich Merz asserted on Monday that the war triggered by US-Israeli strikes against Iran is not a matter for the North Atlantic Treaty Organisation (NATO).
Germany’s position was followed by the United Kingdom, Spain, Poland, Greece, and Sweden, all maintaining distance from Washington’s appeal. Beyond European nations, Australia and Japan also chose not to participate in the operation to secure the sea lane.
This refusal from allies provoked anger from the White House. Donald Trump told the Financial Times on Sunday that it would be extremely damaging to NATO’s future if allies refused to help.
The crisis has also impacted high-level diplomatic schedules between the US and China. Trump stated on Monday that he had requested postponing a summit meeting with Chinese leader Xi Jinping for approximately one month due to the situation.
Meanwhile, financial markets are preparing for central bank decisions this week. Analysts anticipate the potential resumption of interest rate increases to counter possible inflation spikes caused by rising crude oil prices.
Australia moved swiftly in responding to the current global economic situation. Australian authorities stated on Tuesday that they had raised borrowing costs due to sharply rising fuel prices.
Oil market conditions remain volatile despite earlier supply intervention efforts. Oil prices had declined on Monday after IEA chief Fatih Birol signalled that member nations could release more oil from strategic reserves if necessary, following a record release of 400 million barrels the previous week.