KEY POINTS
- Brent crude climbed to $112.87 per barrel on Tuesday; WTI reached $102.49
- Iranian forces allegedly attacked a Kuwaiti oil vessel near Dubai
- Reports suggest Trump may conclude military action despite ongoing strait closure
- March is witnessing a historic 50–54% monthly surge for both major oil benchmarks
- U.S. pump prices exceeded $4 per gallon for the first time in over 18 months
Crude oil prices maintained positions above $110 per barrel on Tuesday as ongoing Middle Eastern hostilities continued to rattle international energy markets.
The global Brent crude benchmark increased 0.1% to reach $112.87 per barrel. West Texas Intermediate experienced a marginal decline to $102.49. Both primary indicators are positioned to close March with gains ranging from 50% to 54%, marking one of the most substantial monthly increases in recorded history.
Gas prices at retail locations surpassed $4 per gallon for the first time since August 2022, based on AAA’s latest figures.
The energy market reacted sharply after a Kuwaiti oil tanker caught fire near Dubai’s port facilities. According to the vessel’s operators, Iranian forces orchestrated the assault.
JUST IN: 🇺🇸🇮🇷 President Trump tells aides he's willing to end Iran war even if Strait of Hormuz remains closed, WSJ reports. pic.twitter.com/gXBqJ3hZ25
— BRICS News (@BRICSinfo) March 31, 2026
Energy markets experienced modest retreat following a Wall Street Journal report indicating President Trump has conveyed to senior advisers his willingness to conclude military operations against Iran, regardless of whether the Strait of Hormuz achieves full operational status.
Trump and his national security team determined that fully reopening the strategic waterway would require significantly more time than the originally projected four-to-six week estimate. Current strategy involves scaling back U.S. military engagement after degrading Iran’s naval forces and missile infrastructure, followed by intensive diplomatic pressure on Tehran.
The Strategic Importance of the Hormuz Waterway
Prior to the outbreak of hostilities, approximately 20% of global world’s oil and liquefied natural gas transited through the Strait of Hormuz. This vital shipping channel continues to experience at least partial obstruction.
According to Iranian state media outlets, Iran’s legislative body has authorized a toll collection system for all maritime traffic passing through the strait.
With the waterway remaining blocked, petroleum prices in the triple-digit range may persist, creating downward pressure across equity markets.
Asian nations heavily reliant on Persian Gulf crude supplies have already implemented energy conservation measures. Bangladesh ordered universities closed. Pakistan and the Philippines introduced compressed work schedules.
Additional Conflict Zones Heightening Market Anxiety
Yemen’s Houthi forces joined the conflict during the weekend, launching strikes against Israel. The Houthis possess demonstrated capabilities to target commercial shipping in the Red Sea, intensifying concerns about expanded battlefronts.
Iran has consistently denied engaging in direct diplomatic channels with the United States, contradicting Washington’s assertions that bilateral negotiations were progressing favorably.
The United States has positioned thousands of military personnel throughout the region. Trump has reiterated warnings about potential strikes on Iran’s energy production facilities and water systems if the Strait remains closed beyond April 6.
Pakistan extended an offer to facilitate ceasefire negotiations in Islamabad. Defense Secretary Pete Hegseth alongside the Chairman of the Joint Chiefs were expected to conduct a media briefing Tuesday morning.
Multiple Gulf region producers suspended oil extraction and export operations during the past month due to the escalating conflict.
