Global oil prices rose on 26 March as renewed tensions in the Middle East raised concerns over disruptions to global energy supplies, prompting a rebound from the previous day’s losses.
By 06:38 GMT, Brent crude futures were up 2.03 per cent, gaining US$2.08 to reach US$104.30 per barrel.
US West Texas Intermediate (WTI) crude also climbed 2.14 per cent, rising US$1.93 to US$92.25 per barrel.
Both major benchmarks had dropped by more than 2 per cent on Wednesday but recovered as markets responded to fresh uncertainty surrounding the regional conflict.
The current escalation threatens to further destabilise the Strait of Hormuz, a critical maritime corridor that channels about one‑fifth of global crude oil and liquefied natural gas shipments.
Analysts consider it one of the most strategically important chokepoints for international energy trade.
The International Energy Agency has described the recent disturbances to oil flows as an unprecedented supply disruption.
Geopolitical tensions have heightened after Iran began assessing a United States proposal aimed at easing the conflict.
The plan, conveyed through Pakistan, reportedly outlines a 15‑point framework that includes the dismantling of Iran’s stockpiles of highly enriched uranium and tighter controls over its ballistic missile program.
However, Iranian officials have provided little indication of willingness to pursue negotiations that might end the hostilities, maintaining uncertainty in oil markets.
In response to the situation, Japanese Prime Minister Sanae Takaichi has called for further coordinated releases of oil reserves to help stabilise global supplies.
During talks with International Energy Agency chief Fatih Birol, Takaichi emphasised the need for international cooperation to mitigate the impact of reduced Middle Eastern output.
Japan previously committed to drawing on joint oil reserves held domestically with producing partners, supplementing a record share of emergency releases already agreed upon with the IEA.
The combination of geopolitical risk and tightening supply elsewhere has amplified price volatility. Beyond the Persian Gulf, ongoing conflicts involving Ukraine and Russia have intensified pressure on production and export capacity.
Ukrainian drone operations targeting Russian infrastructure are reported to have halted roughly 40 per cent of Russia’s oil export volume, according to market estimates.
In Iraq, rising inventories and limited storage capacity are further constraining output, adding to the collective strain on producers.
Market observers note that this combination of events has revived fears of another global energy squeeze reminiscent of previous crises.
Traders are recalibrating positions amid the potential for further sanctions, production cuts, or disruptions to transport routes.
The situation underscores how vulnerable global markets remain to shifts in regional stability, particularly when multiple conflicts overlap across key exporting regions.
Despite the upward movement, analysts expect short‑term price volatility to persist as negotiations, military developments, and policy interventions evolve.
With no immediate signs of de‑escalation, crude benchmarks could continue to fluctuate above the 100‑dollar mark in the coming days as investors track diplomatic efforts and logistical adjustments within major oil‑producing countries.
