Global Oil Prices Surge Nine Percent as Iran Pledges Continued Closure of Strait of Hormuz

Crude oil surges 9% as Iran keeps the Strait of Hormuz closed. Read the latest on IEA supply warnings and the impact on global energy prices and security.

By: AXL Media

Published: Mar 12, 2026, 5:59 PM EDT

Source: The information in this article was sourced from SANA

Energy Markets React to Escalating Middle East Hostilities

Crude oil futures experienced a dramatic rally on Thursday, with prices settling roughly 9% higher as geopolitical instability effectively choked global supply lines. Brent crude surpassed the $100 threshold for the first time since 2022, fueled by Tehran’s aggressive stance and a series of targeted strikes against maritime and energy infrastructure. According to market data, the sudden upward trajectory reflects investor fears regarding the physical availability of oil as the Iranian government remains committed to obstructing the world’s most vital transit artery for energy exports.

The Collapse of Regional Production and Refining Capacity

The current conflict has triggered a systemic failure across Middle East energy hubs, resulting in a total production cut of approximately 10 million barrels per day. This figure, cited by the International Energy Agency, represents nearly 10% of the entire global demand, creating a deficit that exceeds any previous market shock. In Iraq, officials confirmed that domestic oil ports have ceased all operations following maritime attacks. Furthermore, data from IIR indicates that refining capacity has been reduced by 2.35 million barrels per day, as facilities across the Gulf are forced offline by the surrounding violence.

Strategic Stockpile Releases Face Historic Supply Deficit

In an attempt to stabilize the volatile market, the International Energy Agency has authorized the release of 400 million barrels from strategic reserves, the largest such intervention on record. Despite this massive injection of emergency supply, the agency characterized the ongoing crisis as the most significant disruption in the history of the global oil trade. Analysts suggest that while these reserves provide a temporary cushion, they cannot fully compensate for the sustained loss of upstream and downstream operations that have been paralyzed by the escalating regional warfare.