Global Oil Prices Rise After Trump Threatens to Strike Iran's Export Facilities

Global crude oil prices surged on Sunday 15 March 2026 (local time) or Monday 16 March 2026 morning amid escalating military tensions between the United States and Iran, now in their third week of conflict.

The oil price increase followed U.S. President Donald Trump’s threat to strike Iran’s oil export infrastructure on Kharg Island. According to CNBC on Monday 16 March 2026, U.S. crude oil briefly breached $100 per barrel before declining slightly to trade around $98.90 per barrel at 22:28 local time.

Previously, on Friday 13 March 2026, Trump ordered strikes against Iranian military assets on Kharg Island. He stated that the strikes did not target oil facilities.

However, Trump warned that the United States could target Iran’s oil facilities if Tehran continued attacking oil tankers in the Strait of Hormuz, a critical shipping route for global oil trade.

The U.S. government is also preparing plans to escort oil tankers transiting the Strait of Hormuz in coordination with several other nations. U.S. officials told The Wall Street Journal that an announcement of such cooperation could be made this week.

U.S. Ambassador to the United Nations Mike Waltz reiterated Trump’s threat against Iran’s oil facilities.

Approximately 90 per cent of Iran’s oil exports are shipped through Kharg Island, according to investment bank JPMorgan’s analysis.

Based on OPEC data, Iran produced approximately 3.2 million barrels of oil per day in February 2026, with exports of around 1.5 million barrels per day.

“For now, he is deliberately targeting only military infrastructure,” Waltz said.

“However, I believe the option to strike energy infrastructure remains open if necessary,” he added.

JPMorgan’s head of global commodities strategy, Natasha Kaneva, said the threat of strikes against Iran’s oil facilities represents a major escalation in the conflict.