WTI, Brent, Middle East tensions keep markets on edge
A pump jack stands at the Inglewood Oil field in Los Angeles, California, on March 17, 2026.
Patrick T. Fallon | Afp | Getty Images
Oil prices rose in Asian trading on Tuesday after falling sharply overnight as traders assessed developments related to the conflict in the Middle East.
May Brent crude futures rose 3% to $102.96 per barrel, while West Texas Intermediate May futures rose 3.6% to $91.27 per barrel.
This increase came after the sharp sell-off on Monday; Brent crude fell nearly 11% to around $99 per barrel on Monday, after hitting $112 on Friday.
Oil prices since the beginning of the year
“PLEASE, I KNOW THAT THE UNITED STATES OF AMERICA AND THE COUNTRY OF IRAN HAVE HAD VERY GOOD AND PRODUCTIVE MEETINGS REGARDING THE COMPLETE AND TOTAL SETTLEMENT OF OUR MIDDLE EAST hostilities IN THE PAST TWO DAYS,” Trump said in a post on Truth Social on Monday.
“I HAVE INSTRUCTED THE DEPARTMENT OF WAR TO DELAY ANY MILITARY ATTACK AGAINST IRAN’S POWER PLANTS AND ENERGY INFRASTRUCTURE FOR A PERIOD OF FIVE DAYS,” Trump wrote.
While Trump’s statement made oil prices fall, stocks rose. Still, Tuesday’s rebound shows that doubts remain about Trump’s claims, which have also been denied by Iran.
“Despite the euphoria on Wall Street, ladies and gentlemen, oil is well away from its lows after Tehran refused to hold any weekend talks with Washington,” said José Torres, senior economist at Interactive Brokers, adding that the risk of a prolongation of the war was top of mind for the market.
Repeated attacks on critical energy infrastructure in the Middle East have raised ongoing concerns about possible disruptions in production and transportation, Torres said.
“Additionally, given the multiple attacks affecting critical energy in the Middle East, there are concerns that even with a deal, there could be capacity and transportation disruptions that would keep costs higher than at the beginning of the year,” he wrote in a note published Tuesday.
The Strait of Hormuz carried about 20% of global seaborne oil supplies until the outbreak of war, before Iran effectively halted flows through the critical waterway.
Tehran will allow safe passage through the strait except for ships linked to its “enemies”, Iranian state media said on Sunday.
