Oil prices extend gains after record monthly rally as Iran war fuels supply worries
Smoke billows from the smokestacks of an oil refinery in Linden, New Jersey, on March 18, 2026.
Kena Betancur | AFP | Getty Images
Crude oil prices extended gains in Asian trade as increased attacks in the Persian Gulf and US President Donald Trump’s signals of an exit from the Iran conflict despite the Strait of Hormuz being largely closed kept markets on edge.
Brent contract for June delivery It was trading up 1.5% at $105.56 a barrel as of 9:50 a.m. ET — prices rose more than 60% in March, their strongest monthly rally since 1988, and the May contract settled at $118.35 a barrel, up nearly 5% on Tuesday.
US crude oil in May Prices rose nearly 51% in March, marking West Texas Intermediate’s best month since May 2020.
Brent crude oil prices
The US-Israeli campaign against Iran has triggered a severe disruption in energy supplies since the war began on February 28, raising fears in the global economy that relies heavily on Middle Eastern oil.
The war has effectively halted shipments through the Strait of Hormuz, a critical waterway connecting the Persian Gulf and the Gulf of Oman that usually saw 20% of global oil flows before the war began.
Trump said Tuesday evening that he expected US military forces to leave Iran within “two or three weeks” and appeared to declare victory.
“We’re leaving because there’s no reason for us to do this,” Trump told reporters at the White House. “We’ll be leaving very soon.”
Trump also rejected the idea that a negotiated agreement was needed to end the war, saying “Iran doesn’t need to make a deal… it’s a new regime. They’re much more accessible.” He also claimed to have prevented Iran from obtaining nuclear weapons.
Later in the day, White House press secretary Karoline Leavitt said in a post on channel X that Trump would give a national address at 9 p.m. Wednesday to provide an “important update” on Iran.
Military clashes continued: Iran’s Revolutionary Guard announced that it would begin attacking US companies in the region starting Wednesday, with 18 companies listed among them. Google, Microsoft, Apple, IntelIBM, Tesla and Boeing.
“Trump is stuck. Leaving now would be admitting defeat,” said Michael Feller, co-founder of think tank Geopolitical Strategy, adding that destroying civilian infrastructure, as Trump threatened earlier this week, “will make no difference other than pushing oil prices higher.”
Iranian Foreign Minister Abbas Araghchi He told Al Jazeera It was stated that messages were exchanged with the USA directly or through regional countries on Tuesday, but these did not constitute “negotiations”.
“I’m getting messages from me [US special envoy] “We are in direct talks with Witkoff as before, and this does not mean that we are in negotiations,” he said. “There is no truth to the allegations of negotiations with any party in Iran. “All messages are transmitted through or received by the State Department and there is communication between security agencies,” he said.
