Finance
US oil prices up nearly $3 as middle east crisis constrains supply
Published by Global Banking & Finance Review®
Posted on March 10, 2026
3 min readLast updated: March 10, 2026
Quick Summary
U.S. oil prices jumped about $2.90 per barrel (3.5%) to $86.33 early March 11 as the U.S.–Israel war with Iran disrupts Gulf oil flows, prompting G7 and IEA to consider releasing strategic reserves amid surging volatility.
US Oil Prices Jump Nearly $3 Amid Middle East Crisis and Tight Supply
Market Reactions and Geopolitical Influences on US Oil Prices
By Katya Golubkova
US Oil Price Surge and Recent Trading Activity
TOKYO, March 11 (Reuters) - U.S. West Texas Intermediate crude oil prices rose by $2.90 per barrel, or 3.5%, to $86.33 in early trade on Wednesday as supplies from the Gulf remain constrained amid the U.S. and Israeli war on Iran.
Brent futures start trading at 0100 GMT. WTI rebounded after both contracts plunged by more than 11% on Tuesday, the steepest percentage drop since 2022, a day after U.S. President Donald Trump predicted a quick end to the war.
Escalation of US and Israeli Actions in the Middle East
The U.S. and Israel pounded Iran on Tuesday with what the Pentagon and Iranians on the ground called the most intense airstrikes of the war.
The U.S. military also "eliminated" 16 Iranian mine-laying vessels near the Strait of Hormuz on Tuesday, the U.S. Central Command said, as Trump warned any mines laid in the Strait by Iran must be removed immediately.
Security Concerns and Shipping Industry Impact
Trump has repeatedly said the U.S. is prepared to escort tankers through the Strait of Hormuz when necessary. However, sources told Reuters the U.S. Navy has refused requests from the shipping industry for military escorts as the risk of attacks is too high for now.
Market Volatility and Analyst Perspectives
"We continue to expect crude oil to remain highly volatile, driven by headlines while trading within a wide range between $75ish and $105ish in the sessions ahead," Tony Sycamore, market analyst with IG in Sydney, said in a note.
Emergency Measures and G7 Response
On Monday, crude oil prices surged to a session high above $119 a barrel, their highest since June 2022, and G7 officials have since gathered online to discuss a potential release of emergency oil stockpiles to soften the market blow.
French President Emmanuel Macron will host a video call with other G7 country leaders on Wednesday to discuss the impact of the conflict in the Middle East on energy and measures to address the situation.
Supply Disruptions and Inventory Data
Impact of War on Oil Supply
War in Iran is currently cutting Gulf oil and oil products supply to the market by some 15 million barrels per day which could raise crude prices to $150 per barrel, according to research and consultancy firm Wood Mackenzie.
US Inventory Trends
Reflecting higher demand, U.S. crude, gasoline and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
(Reporting by Katya Golubkova; Editing by Chris Reese)
Key Takeaways
- •The conflict in Iran has severely constrained Gulf oil exports, disrupting roughly 20% of global supply via the Strait of Hormuz. (aljazeera.com)
- •Oil markets are highly volatile, with WTI plummeting over 11% on March 10—the steepest drop since 2022—before rebounding sharply. (apnews.com)
- •G7 and IEA officials are evaluating strategic reserve releases to stabilize markets; G7 expressed readiness, while IEA held an emergency meeting on March 10. (theguardian.com)
References
Frequently Asked Questions about US oil prices up nearly $3 as Middle East crisis constrains supply
1Why did US oil prices rise nearly $3 per barrel?
US oil prices surged due to constrained supplies from the Gulf amid ongoing conflict involving the US, Israel, and Iran in the Middle East.
2How has the Middle East crisis impacted oil supply?
The war in Iran is currently cutting Gulf oil and oil products supply by about 15 million barrels per day, reducing global supply.
3What is the estimated price range for crude oil in coming sessions?
Analysts expect crude oil prices to remain highly volatile, trading between $75 and $105 per barrel in the sessions ahead.
4How are world leaders responding to the oil supply crisis?
G7 leaders are meeting to discuss releasing emergency oil stockpiles and measures to address energy market disruptions due to the conflict.
5What effect has higher demand had on US oil stocks?
Reflecting increased demand, US crude, gasoline, and distillate stocks fell last week according to American Petroleum Institute figures.
