Oil spikes on rising Middle East tensions

March 19, 2026 (MLN): Global oil prices rallied sharply on Thursday, with Brent Crude climbing above $115 per barrel its highest level in over a week amid escalating tensions in the Middle East that have raised fears of prolonged supply disruptions.

The surge followed a series of retaliatory strikes by Iran targeting key energy infrastructure across the region after earlier attacks on its South Pars gas field, significantly intensifying the ongoing conflict.

Currently, Brent crude future is increase by $9.98, or 9.29% to $117.36 per barrel, according to Mettis Global data.

West Texas Intermediate (WTI) crude futures up by $0.35, or 3.36%, to $96.376 per barrel by [02:58 am] PST.

WTI continues to trade at its widest discount to Brent in more than a decade, weighed down by persistent releases from the U.S. strategic petroleum reserves and elevated transportation costs.

In contrast, Brent has found strong upward support due to its greater exposure to geopolitical risks in the Middle East.

The latest escalation could have lasting implications for global energy markets. According to Priyanka Sachdeva of Phillip Nova, targeted attacks on oil infrastructure and rising instability in the region signal a potential for sustained supply disruptions, as reported by Reuters.

Adding to market uncertainty, the Federal Reserve kept interest rates unchanged in its latest policy meeting but maintained a cautious outlook, warning of rising inflationary pressures linked to geopolitical tensions and energy market volatility.

The situation on the ground remains volatile. QatarEnergy reported “extensive damage” at Ras Laffan one of the world’s largest LNG processing hubs following missile strikes attributed to Iran.

In Saudi Arabia, authorities confirmed the interception of four ballistic missiles targeting Riyadh, along with the neutralization of a drone aimed at a gas facility.

Additionally, an aerial attack targeted the SAMREF refinery in Yanbu, a key Red Sea refining hub operated by Saudi Aramco.

Elsewhere, Kuwait Petroleum Corporation reported that a drone strike hit an operational unit at its Mina al-Ahmadi refinery, triggering a limited fire that was later contained.

Prior to launching the strikes, Iran issued evacuation warnings for multiple oil installations across Saudi Arabia, the UAE, and Qatar, signaling a coordinated response to earlier attacks on its own energy infrastructure in South Pars and Asaluyeh.

With hostilities expanding to critical oil and gas assets, markets remain on edge as traders assess the risk of a broader supply shock that could further drive up global energy prices.

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