Mar 27, 2026 - Oil prices surged on Thursday as Iranian attacks continued to disrupt shipping in the Strait of Hormuz, raising concerns over global energy supplies.
Benchmark Brent crude rose more than 5 percent to trade above $108 per barrel in early trading, while West Texas Intermediate climbed above $100. The gains followed reports of additional Iranian missile and drone strikes targeting vessels and infrastructure near the narrow waterway between the Persian Gulf and the Gulf of Oman.
The Strait of Hormuz carries roughly 20 million barrels per day of crude oil and petroleum products, accounting for about 25 percent of global seaborne oil trade and nearly one-fifth of total world oil consumption. Most of the oil passing through the strait is destined for Asia, with China receiving the largest share.
Iranian forces have conducted repeated attacks in the area in recent weeks as part of the broader conflict with Israel and the United States. Incidents have included strikes on ships and threats that have led to reduced traffic through the chokepoint. Several tankers have reportedly altered routes or delayed transits, contributing to tighter supply expectations in international markets.
The disruptions come amid ongoing military exchanges. Iranian strikes have targeted sites in Gulf Arab states, while U.S. and Israeli operations have continued against Iranian positions. Earlier this week, a fire broke out at a fuel tank near Kuwait International Airport following one such attack.
The Trump administration has deployed additional U.S. troops, including paratroopers from the 82nd Airborne Division, to the Middle East to support regional operations and protect shipping lanes. Diplomatic efforts have included a U.S. ceasefire proposal conveyed through Pakistani intermediaries, which Iran rejected on Wednesday while issuing counter-demands.
Energy markets have shown heightened volatility since the conflict intensified in late February. Oil prices have risen sharply from levels seen earlier in the year, reflecting risks to production and transit in one of the world's most critical energy corridors. Limited bypass pipeline capacity, estimated at 3.5 to 5.5 million barrels per day, has offered only partial alternatives for rerouting flows.
As of Thursday, trading remained active with prices holding near recent highs. Shipping activity in the Strait of Hormuz stayed limited, and no immediate resolution to the attacks or the wider conflict was reported. Intermediaries continued to relay messages between the sides while military activity persisted across the region.
