Strait of Hormuz Crisis Sends Oil Prices Soaring to US$101 per Barrel
Global oil prices have surged sharply in recent days amid escalating geopolitical tensions in the Middle East. According to Refinitiv data, Brent crude traded at US$101.16 per barrel on Friday (13 March 2026) at 10:00 AM Western Indonesia Time, whilst West Texas Intermediate (WTI) was recorded at US$96.34 per barrel. This increase represents the highest oil price level since mid-2022.
The sharp rise occurred following heightened tensions in the Persian Gulf, particularly concerning Iran’s threats to close the Strait of Hormuz. However, oil prices experienced a brief correction on Friday morning after the United States issued a temporary 30-day licence allowing countries to purchase Russian oil currently stranded at sea—a measure intended to ease global supply concerns.
According to Reuters, analyst Yang An of Haitong Futures assessed that the licence does not address the core issue. He noted that global energy market stability heavily depends on the restoration of shipping lanes through the Strait of Hormuz, a critical waterway currently transporting approximately one-fifth of global oil trade.
To contain price increases, the United States government announced the release of 172 million barrels from its Strategic Petroleum Reserve (SPR). This action was coordinated with International Energy Agency member countries, which plan to release 400 million barrels in strategic oil reserves—described as the largest release in the agency’s history.
Nevertheless, market sentiment remains shadowed by military escalation in the Persian Gulf region. Iran’s supreme leader, Mojtaba Khamenei, reaffirmed that the country will continue its resistance and maintain the closure of the Strait of Hormuz as a pressure tool against the United States and Israel. This statement triggered a more than 9 per cent surge in oil prices on Thursday, bringing prices to their highest level since August 2022.
Security conditions in the region are deteriorating further. Two fuel tankers were reportedly attacked by explosive-laden boats belonging to Iran in Iraqi waters. Iraqi security officials stated to government media that all the country’s oil export ports have now halted operations—a development that further tightens oil supplies from the Persian Gulf region.
These tensions have prompted various countries to take emergency measures. According to Bloomberg reporting cited by Reuters, Oman has relocated all vessels from its main oil export terminal at Mina Al Fahal as a precautionary measure. Meanwhile, Saudi Arabia has begun rerouting tankers through the East-West pipeline towards the Red Sea, despite having to pay higher logistics premiums.
Amidst this situation, the global oil market has experienced high volatility throughout March. Refinitiv data shows that Brent crude was at US$81 per barrel in early March before surging above US$100 per barrel in less than two weeks. This movement reflects the market’s sensitivity to supply disruptions from the Persian Gulf region.
Notably, Iran is reported to still permit one to two tankers per day to pass through the Strait of Hormuz, particularly destined for China. According to Reuters, this step is viewed as Tehran’s strategy to maintain oil revenue flows whilst preserving Beijing’s support amid intensifying geopolitical pressure.