Strait of Hormuz Escalation: Global Oil Prices Surge 9 Per Cent, Break Through 100 Dollars

New York — Global crude oil prices surged approximately 9 per cent at the close of trading on Thursday (12 March 2026) local time, or Friday morning (13 March 2026) Indonesian Western Time, marking the largest single-day increase in nearly four years.

The surge was triggered by escalating Iranian attacks on oil facilities and transportation infrastructure in the Middle East, coupled with threats to permanently close the Strait of Hormuz, a critical waterway for global oil trade.

According to Reuters, Brent crude futures rose 8.48 dollars, or 9.2 per cent, to 100.46 dollars per barrel, after briefly touching an intra-session high of 101.60 dollars per barrel. Meanwhile, West Texas Intermediate (WTI) crude futures climbed 8.48 dollars, or 9.7 per cent, to 95.70 dollars per barrel.

Both contracts recorded their highest closing prices since August 2022.

The price surge followed Iran’s intensified attacks on energy facilities across the Middle East and statements from the country’s supreme leadership reaffirming its intention to keep the Strait of Hormuz closed, a vital maritime route for global oil commerce.

“The market is currently severely out of balance, and this condition will persist until the Strait of Hormuz is reopened and upstream and downstream operations return to normal. This will not happen quickly,” said Jim Burkhard, Vice President and Head of Global Crude Oil Research at S&P Global Energy.

Despite the escalating conflict, analysts assess that global oil prices are unlikely to reach 200 dollars per barrel.

The security situation in the region has deteriorated further following reports that two fuel tankers in Iraqi waters came under attack from Iranian-operated explosive-laden boats. An Iraqi official told state media that all of the country’s oil export terminals have suspended operations.

In Oman, all vessels have been relocated from the main oil export terminal at Mina Al Fahal, located outside the Strait of Hormuz, as a precautionary measure.

The International Energy Agency (IEA) has characterised the current conflict as triggering the largest oil supply disruption in global market history. The IEA has approved the release of 400 million barrels of strategic oil reserves, marking the largest such release in the agency’s history.