Iran Conflict Closes Energy Corridor; Global Oil Prices Head Towards $150 per Barrel?
Jakarta — Global crude oil prices have jumped sharply, breaching the $110 per barrel mark on Monday, 9 March 2026.
Oil prices rose today amid escalating conflict between the United States, Israel and Iran, which has triggered serious disruptions to global energy supply routes through the Strait of Hormuz.
The oil price surge followed several major Middle Eastern producers cutting production, whilst tanker traffic through the Strait of Hormuz has nearly halted due to fears of attacks during the ongoing conflict.
Stock markets across the Asia-Pacific region weakened sharply at the start of this week’s trading, with market participants estimating oil prices could rise significantly higher if supply disruptions persist.
Crude oil prices jumped dramatically at the start of the week as markets responded to increased geopolitical risk in the Middle East.
According to OilPrice.com at 12:58 WIB, the US crude oil benchmark West Texas Intermediate (WTI) stood at $105.9 per barrel. WTI crude temporarily surged 26.5 per cent, or approximately $24, to reach $114.9 per barrel.
This increase came just days after oil prices breached the psychological $100 per barrel level. Previously, oil prices last exceeded this threshold following Russia’s invasion of Ukraine in 2022.
Indeed, last week’s oil price increase marked the largest weekly surge in the history of US crude futures trading since 1983.
The price increase occurred rapidly. Several market participants had estimated oil would reach $100 per barrel this week, yet prices have climbed far more quickly.
The oil price surge followed significant disruption to energy traffic through the Strait of Hormuz due to the ongoing conflict.
The Strait of Hormuz is a narrow shipping passage connecting the Persian Gulf to the Arabian Sea and represents one of the world’s most strategically important energy corridors. Approximately one-fifth of global oil supply is typically shipped through this route.
However, since the conflict erupted about a week ago, tanker traffic through the strait has nearly halted.
As a result, several oil-producing nations in the Gulf region have been forced to cut production as their oil storage capacity approaches saturation.
According to CNBC reporting, Kuwait, the fifth-largest oil producer in the Organisation of the Petroleum Exporting Countries (OPEC), has announced preventive cuts to its oil production and refinery output.
Kuwait’s state-owned energy company Kuwait Petroleum Corporation cited the move as a response to Iran’s threats to maritime safety in the Strait of Hormuz. However, the company did not specify the scale of the production cuts.
Before the conflict, these fields were producing approximately 4.3 million barrels per day.