Oil prices rose on March 16 as investors refocused on risks to oil infrastructure in the Middle East, despite US President Donald Trump's call for other countries to help ensure the safety of shipping in the Strait of Hormuz.
Points of attention
- Global benchmark oil prices have reached above $100 per barrel and remain stable, driven by risks to oil infrastructure in the Middle East.
- Iran's blockage of shipping through the Strait of Hormuz has caused significant disruptions to global oil supplies, leading to heightened concerns in the oil market.
Oil prices remain above $100 per barrel
Brent crude futures rose $1.27, or 1.2%, to $104.41 a barrel after rising $2.68 on March 13. U.S. West Texas Intermediate (WTI) crude rose 54 cents, or 0.6%, to $99.25 a barrel after rising nearly $3 in the previous trading session.
Both brands have risen more than 40% since the start of the month and reached their highest levels since 2022 after US and Israeli strikes on Iran prompted Tehran to block shipping through the Strait of Hormuz, causing one of the biggest disruptions to global oil supplies.
The US strikes on Kharg Island over the weekend have raised supply concerns as most of Iran's oil exports pass through it, commodities analysts at ING said.
While the strikes likely targeted the island's military rather than energy infrastructure, they still pose supply risks, analysts said. For now, Iranian oil is effectively the only oil still moving through the Strait of Hormuz.
Over the weekend, Trump also threatened new strikes on Iran's Kharg Island, through which about 90% of the country's oil exports pass.
In response, Iranian drones attacked a key oil terminal in Fujairah, United Arab Emirates. Oil transshipment operations at Fujairah later resumed, four sources said, but it was unclear whether they had returned to normal operations.
Fujairah, located outside the Strait of Hormuz, is a supply point for the UAE's flagship oil, Murban, with a volume of about 1 million barrels per day, accounting for about 1% of global demand.
