Oil Prices Surge as US Strikes Escalate Iran Conflict

SINGAPORE, March 16 — Oil prices jumped as much as 3.3% after US strikes on Iran’s Kharg Island, its main export hub, raising fears of supply disruptions. Brent crude rose 1.2% to US$104.41 a barrel by midday Singapore time, while West Texas Intermediate climbed 0.6% to US$99.25. Both benchmarks have surged over 40% in March, their highest since 2022, following Tehran’s halt of shipping through the Strait of Hormuz, which carries a fifth of global oil supply.

Oil Prices Surge

Analysts warn the strikes, though aimed at military targets, still threaten energy flows. Iran retaliated with drone attacks on Fujairah in the UAE, briefly disrupting oil operations. The US is weighing further escalation, including seizing Kharg Island or raiding nuclear sites. Meanwhile, the International Energy Agency announced a record release of 400 million barrels from reserves to ease price spikes. Despite uncertainty, US officials expect the conflict to end within weeks, stabilizing supply.