Finance
Oil Prices Rise After Us, Iran Threaten to Hit Energy Targets in the Middle East
Published by Global Banking & Finance Review®
Posted on March 22, 2026
3 min readLast updated: March 22, 2026
Quick Summary
Oil prices climbed as U.S. President Trump issued an ultimatum to Iran to reopen the Strait of Hormuz or face attacks on its power plants, prompting Iran to retaliate with threats of strikes on regional energy infrastructure—a sharp escalation that intensified supply fears and drove Brent toward $11
Oil stabilises as investors weigh US, Iran threats to facilities, sanctions lift
Market Reactions and Geopolitical Tensions Impacting Oil Prices
By Florence Tan
Oil Price Movements and Market Dynamics
SINGAPORE, March 23 (Reuters) - Oil prices were little moved on Monday as investors weighed U.S. and Iranian threats to target energy facilities that could escalate the war against the release of millions of barrels of Iranian oil at sea to global markets after Washington lifted sanctions.
Brent crude futures dropped 8 cents to $112.11 a barrel by 2324 GMT after settling at the highest since July 2022 on Friday.
U.S. West Texas Intermediate was at $98.17 a barrel, down 6 cents, after a 2.27% gain in the previous session. The spread between Brent and WTI has exceeded $14 a barrel, the widest in years.
Expert Insights on Short-Term Price Fluctuations
Michael McCarthy, CEO of online trading platform Moomoo Australia, said oil prices were falling temporarily due to low liquidity and traders taking profit in the short term.
"Momentum clearly favours further upside, and a test of the recent highs near $120 is a realistic scenario this week," he added.
Escalating US-Iran Tensions and Threats to Energy Infrastructure
US and Iranian Statements
U.S. President Donald Trump on Saturday threatened to "obliterate" Iran's power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, a significant escalation barely a day after he talked about "winding down" the war, now in its fourth week.
Iran's Parliament Speaker Mohammad Baqer Qalibaf wrote on X that critical infrastructure and energy facilities in the Middle East could be "irreversibly destroyed" should Iranian power plants be attacked.
Analyst Perspectives on Potential Outcomes
"It clearly means more escalation which means higher oil prices. Some are incorrectly thinking, however, that Iran may cave," said Amrita Sen, founder of Energy Aspects. "Trump is trying to show he can out-escalate and that way ends in scorched earth for Gulf infrastructure."
Impact on Gulf Energy Facilities and Oil Production
The war has damaged major energy facilities in the Gulf and brought shipping through the Strait of Hormuz - which handles about 20% of global oil and liquefied natural gas flows - close to a halt. Analysts estimated a loss of 7 million to 10 million barrels per day of oil production in the Middle East.
Iraq has declared force majeure on all oilfields developed by foreign oil companies, three energy officials said. Iraqi Oil Minister Hayan Abdel-Ghani said in a ministry statement that crude production at Basra Oil Company has been cut to 900,000 bpd from 3.3 million bpd.
Sanctions Lift and Global Oil Supply Response
US Sanctions Relief on Iranian Oil
To alleviate the supply crunch, Washington temporarily removed sanctions on Iranian oil at sea.
Asian Refiners' Response
Indian refiners plan to resume buying Iranian oil while refiners elsewhere in Asia are examining such a move, traders said on Saturday.
(Reporting by Florence Tan; Additional reporting by Dmitry Zhdannikov; Editing by Chris Reese and Jamie Freed)
Key Takeaways
- •Brent crude rose to around $113.20 a barrel and WTI to $98.85, as fears mounted over escalating U.S.-Iran conflict threatening regional oil output. (Reuters, AP) (apnews.com)
- •The International Energy Agency called the Strait of Hormuz closure the greatest global energy security threat in history and responded by releasing 400 million barrels from emergency reserves. (IEA, Le Monde) (lemonde.fr)
- •Oil had already surged in early March—Brent briefly topped $119 and reached as high as $126 at its peak—amid widespread disruptions to Middle East supplies, with shipping through Hormuz nearly halted. (AP, Wikipedia) (apnews.com)
References
Frequently Asked Questions about Oil prices rise after US, Iran threaten to hit energy targets in the Middle East
1Why did oil prices rise on Monday?
Oil prices rose due to escalating tensions, with the US and Iran threatening to strike energy targets in the Middle East.
2How much did Brent crude increase to?
Brent crude futures rose $1.01, or 0.90%, to $113.20 a barrel.
3What was the price of US West Texas Intermediate crude?
US West Texas Intermediate was at $98.85 a barrel, up 62 cents, or 0.63%.
4What triggered the latest rise in oil prices?
The surge was triggered by threats from US and Iranian leaders to attack Middle East energy facilities, escalating regional conflict.
5Where was the information in the report sourced from?
The report was sourced from Reuters with reporting by Florence Tan and editing by Chris Reese.