Brent crude oil futures soared past $110 per barrel on Friday, March 20, 2026, marking the highest level since mid-2022, as the U.S.-Israeli war on Iran escalated into its fourth week with devastating strikes on regional energy assets.
The surge capped a turbulent week where Brent fluctuated between $107 and $119 per barrel, while West Texas Intermediate crude neared $96. Prices have rocketed about 50% since February 28, when the conflict ignited with U.S. and Israeli strikes on Iran and Brent settled around $73 per barrel.
Escalation rattles markets
Markets now reflect real supply disruptions, not just risks. Iraq invoked force majeure on all oilfields, drone attacks crippled Kuwaiti refineries, and Israel’s strike on Iran’s South Pars gas field — co-owned with Qatar — triggered Iranian retaliation against Gulf neighbors’ energy sites.
The Strait of Hormuz, vital for 20% of global daily oil, has seen tanker traffic collapse from 138 transits per day to near zero initially. Lloyd’s List Intelligence data shows only 89 vessels passed between March 1 and 15, per week.
President Trump hinted at “winding down” the war, even as more U.S. Marines deployed. Treasury Secretary Scott Bessent allowed sanctioned Iranian oil tankers through the strait to ease prices.
Emergency reserves activated
The International Energy Agency unleashed its largest strategic reserve release ever: 400 million barrels, double the 2022 Ukraine crisis drawdown. The U.S. committed 172 million barrels from its Strategic Petroleum Reserve over 120 days starting March 16.
This provided brief relief, but analysts note it equals just four days of global production. Macquarie’s Vikas Dwivedi warned CNA that $150 per barrel is feasible without quick resolution. JPMorgan and Goldman Sachs forecast $120–$150 if the strait stays closed.
Broader economic fallout
Gas prices in the U.S. exceed $5 per gallon, hitting households amid tariff hikes. Israel’s South Pars damage threatens 20% of global LNG from Qatar’s Ras Laffan for years.
CBS News warns sustained high prices from these disruptions could unleash “debilitating inflation” worldwide.
As of Sunday, March 22, 2026, oil volatility persists, with traders eyeing diplomatic breakthroughs or further escalation.
