Middle East Conflict Heats Up, Global Oil Prices Surge
NEW YORK - Global oil prices strengthened at the end of trading on Monday (30/3/2026) local time, or Tuesday (31/3/2026) morning Western Indonesia Time, with Brent crude set to record the highest monthly increase in history.
Meanwhile, US crude oil broke through the $100 US per barrel level for the first time since 2022.
Citing Reuters, Brent crude oil rose 21 cents or 0.2 percent to $112.78 US per barrel, after surging more than $4 to a daily high of $116.89 US per barrel.
The price increase was triggered by the widening conflict in the Middle East, after Yemen’s Houthi group expanded Iran’s war by launching its first attack on Israel.
The Israeli military stated it had intercepted two drones launched from Yemen on Monday, two days after the Iran-allied Houthi group fired missiles at Israel for the first time since the war began.
The conflict has spread in the Middle East since the US and Israeli attacks on Iran began on 28 February 2026, raising concerns over shipping routes around the Arabian Peninsula and the Red Sea.
“If the Houthis attack shipping and close the southern entrance to the Red Sea, it could push prices up by $5 to $10 US per barrel,” said Robert Yawger, director of energy futures at Mizuho.
Iran’s effective closure of the Strait of Hormuz, a strategic route carrying around one-fifth of global oil and gas supplies, has driven a 57 percent surge in oil prices throughout the month.
The surge marks the sharpest monthly increase since 1988, surpassing the spike during the 1990 Gulf War.
US President Donald Trump warned that Iran’s energy facilities and oil wells would be “destroyed” if the country does not reopen the Strait of Hormuz.
The statement came after Iran deemed the US peace proposal unrealistic and launched a wave of missiles at Israel.
Previously, Trump stated he would delay strikes on Iran’s energy infrastructure until 6 April, while noting that talks between the two countries were ongoing both directly and indirectly.
To ease investor concerns, G7 financial leaders stated they are prepared to take “all necessary steps” to maintain energy market stability and limit broader economic impacts.