Global Oil Prices Return to Over US$100 per Barrel Following Mojtaba Khamenei's Order to Close Strait of Hormuz

Global oil prices have surged past the symbolic US$100 per barrel level at the close of trading on Thursday, 12 March 2026, following a dramatic escalation in Middle Eastern tensions. The sharp increase came after Mojtaba Khamenei, Iran’s new supreme leader, delivered his inaugural address and reaffirmed the country’s commitment to maintaining the closure of the Strait of Hormuz amidst intensifying regional conflict.

According to CNBC International, Brent crude, the global benchmark, rose 9.22 per cent by approximately US$8.48 to US$100.46, or approximately £1,700,737.57 per barrel (at an estimated exchange rate of 16,930 rupiah per US dollar). This marks the first time Brent crude has closed above US$100 since August 2022.

Meanwhile, the United States’ crude oil benchmark, West Texas Intermediate (WTI), recorded a gain of 9.72 per cent, rising US$8.48 to US$95.73, or roughly £1,620,661.04 per barrel.

Khamenei, the son of outgoing supreme leader Ali Khamenei, pledged to maintain the Strait of Hormuz closure. The Iranian leader issued this confirmation as attacks on commercial vessels in the Persian Gulf have escalated sharply in recent days.

At minimum, two oil tankers and one cargo vessel were struck near Iraqi and United Arab Emirates waters on Thursday evening, 12 March 2026, with additional attacks reported near the strategically vital strait itself.

The Strait of Hormuz, which serves as the world’s most strategically important energy distribution corridor, is now a focal point of global concern. Approximately one-fifth of global oil supplies pass through the strait, which connects the Persian Gulf to world energy markets.

The Market Disregards IEA and US Strategic Reserve Releases

Oil price gains have occurred as member nations of the International Energy Agency (IEA) announced the largest emergency oil reserve release in history. The IEA agreed to allocate approximately 400 million barrels of oil from strategic reserves to mitigate price increases resulting from global supply disruptions.

The United States government also announced the release of 172 million barrels from its national strategic petroleum reserve. However, markets appear sceptical that such measures can adequately address the supply shortfall resulting from the Strait of Hormuz closure.

“As we have repeatedly stated, the only sustainable way to lower oil prices is to ensure that oil flows through the Strait of Hormuz are restored,” stated analysts at Dutch bank ING in their assessment.