By Micah Jonah, March 11, 2026
Global oil prices have experienced sharp fluctuations as uncertainty surrounding the war involving the United States, Israel and Iran continues to unsettle energy markets.
Brent crude, the international benchmark, dropped by as much as 17 percent to below $80 per barrel before rebounding towards $90 after a social media post suggested that the US Navy had escorted an oil tanker through the Strait of Hormuz. The claim was later withdrawn, and officials clarified that no armed escort had taken place.
Prices fell again after reports that the International Energy Agency was considering the largest release of strategic oil reserves in its history to stabilize global supply.
Energy markets have been on edge since the start of the conflict between the United States and Israel against Iran on February 28. Brent crude had earlier surged close to $120 per barrel before retreating, though prices remain significantly higher than before the war began.
The disruption is largely linked to reduced shipping activity through the Strait of Hormuz, a crucial maritime route that carries roughly one fifth of the world’s oil supply. Iranian threats and military activity in the region have caused shipping delays and forced several Gulf producers to scale back production.
Major oil exporting countries including Saudi Arabia, United Arab Emirates, Kuwait and Iraq have reportedly reduced output as storage capacity fills up due to limited export routes.
Economists warn that sustained increases in oil prices could push global inflation higher, slow economic growth. According to analysis by the International Monetary Fund, every 10 percent increase in oil prices can raise inflation by about 0.4 percent while reducing economic growth by roughly 0.15 percent.
The conflict has already driven fuel prices upward in several countries, prompting governments to introduce price caps, subsidies and rationing measures to shield consumers from rising costs.
Meanwhile, Donald Trump has said the US Navy could be deployed to keep the Strait of Hormuz open if necessary, though analysts say the threat of Iranian sea mines and missile attacks could make such operations difficult.
Market analysts say traders are now focused on whether normal oil shipments can resume through the Strait of Hormuz, a key factor that will determine the direction of global energy prices in the coming weeks.
