{"id":6761,"date":"2026-03-10T10:28:08","date_gmt":"2026-03-10T10:28:08","guid":{"rendered":"https:\/\/jubaglobal.com\/?p=6761"},"modified":"2026-03-10T10:28:09","modified_gmt":"2026-03-10T10:28:09","slug":"oil-prices-surge-to-120-barrel-as-iran-war-threatens-strait-of-hormuz-supply-routes","status":"publish","type":"post","link":"https:\/\/directtopic.com\/jubaglobal.com\/oil-prices-surge-to-120-barrel-as-iran-war-threatens-strait-of-hormuz-supply-routes\/","title":{"rendered":"Oil Prices Surge to $120\/Barrel as Iran War Threatens Strait of Hormuz Supply Routes"},"content":{"rendered":"\n
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By Juba Global News Network | JubaGlobal.comMarch 10, 2026
The ongoing U.S.-Israel war with Iran, now in its second week, has unleashed the most severe energy supply shock in modern history, sending global oil prices soaring and rattling economies worldwide. Brent crude, the international benchmark, briefly spiked to nearly $120 per barrel in early trading on March 9 before volatile swings saw it settle around $93\u2013$99 by March 10. This dramatic surge stems directly from the effective closure of the Strait of Hormuz<\/strong>, the narrow chokepoint through which approximately 20% of the world\u2019s seaborne crude oil\u2014around 20 million barrels per day\u2014normally flows, along with a significant share of liquefied natural gas (LNG).<\/p>\n\n\n\n

The Strait of Hormuz: The World\u2019s Most Critical Energy Artery Under Siege<\/strong><\/p>\n\n\n\n

Located between Iran and Oman, the Strait of Hormuz connects the Persian Gulf\u2019s oil-rich producers (Saudi Arabia, Iraq, UAE, Kuwait, Qatar, and Iran itself) to global markets. Since the conflict escalated following U.S. and Israeli strikes beginning February 28, Iran has declared the strait off-limits to \u201chostile\u201d vessels, backed by drone and missile threats that have deterred commercial shipping. Ship-tracking data from firms like Vortexa and Lloyd\u2019s List Intelligence shows daily transits plummeting from over 150 vessels pre-war to an average of just 13 or fewer in recent days\u2014an 80\u201390% drop. No major tankers have safely passed without extreme risk, stranding millions of barrels of oil and gas behind the chokepoint.<\/p>\n\n\n\n

This marks the largest single disruption ever recorded: more than double the impact of historical crises like the 1956 Suez Crisis (around 10% global supply affected) or the 1990\u201391 Gulf War. Analysts at Rapidan Energy describe it as \u201cabout as wrong as things could go\u201d for global oil markets, with no bypass routes sufficient to compensate. Saudi Arabia\u2019s East-West pipeline and UAE alternatives can redirect only about 3 million barrels per day at best\u2014leaving over 85% of Gulf exports stranded.<\/p>\n\n\n\n

Iran\u2019s actions include retaliatory strikes on tankers attempting passage and vows from the IRGC that \u201cnot one litre\u201d of oil will export if attacks continue. This has forced shutdowns at key facilities: Iran\u2019s Kharg Island (handling 90% of its exports), major Gulf terminals, and even Qatar\u2019s LNG production, driving freight rates for gas tankers up over 40%.<\/p>\n\n\n\n

Oil Price Volatility: From $67 to Triple Digits in Days<\/strong><\/p>\n\n\n\n

Before the war erupted, Brent crude hovered around $65\u2013$70 per barrel in late February. The initial strikes triggered modest gains, but as the Hormuz closure became evident by early March, prices accelerated:<\/p>\n\n\n\n