Trump Delays Attack on Iran's Energy Facilities, Oil Prices Stabilise

Global oil prices have remained stable following US President Donald Trump’s decision to once again postpone the deadline for an attack on Iran’s energy sector. This decision provides a short-term respite for the market but extends the uncertainty surrounding the conflict until early April. According to Bloomberg on Friday (27/3/2026), Brent crude was trading slightly below $108 per barrel after an initial weakening in the session, while West Texas Intermediate (WTI) crude was around $94 per barrel. Trump stated that Iran had requested seven days, but the US government decided to grant a 10-day deadline until 6 April 2026. This extension opens opportunities for diplomatic channels while allowing the US to bolster its military presence in the region. Deployed forces include Marine Expeditionary Units and troops from the US Army’s 82nd Airborne Division. Additionally, a Wall Street Journal report indicates that the Pentagon is considering sending up to 10,000 additional ground troops. Brent crude is on track for its highest monthly gain in history in March, driven by escalating tensions between the US, Israel, and Iran in the oil-rich Middle East. Iran’s closure of the Strait of Hormuz has significantly disrupted global energy flows; this route previously handled about 20% of the world’s oil supply. Approximately 8 million barrels per day of oil supply have been halted, while other energy flows in the Persian Gulf remain vulnerable to disruptions. The geopolitical risk premium is expected not to subside in the near term. Meanwhile, analysts at Macquarie Group Ltd. estimate a 60% chance of the conflict ending by the end of March. However, there is a 40% possibility that the war could continue until June, potentially pushing oil prices up to $200 per barrel. Iran, via the Tasnim News Agency, stated it is awaiting a response after rejecting a 15-point US peace proposal and submitting its own conditions, including recognition of its authority over the Strait of Hormuz.