Oil Prices Climb as Investors Reassess Ceasefire Prospects Amid Middle East Conflict

Brent crude hits $104.30 as Iran rejects US peace talks and Russia's export capacity slumps by 40% amid ongoing drone attacks and tanker seizures.

By: AXL Media

Published: Mar 26, 2026, 12:25 PM EDT

Source: Reuters

Market Benchmarks and Pricing Dynamics

By mid-morning Thursday, Brent crude futures gained $2.08 to reach $104.30 a barrel, while U.S. West Texas Intermediate (WTI) rose $1.93 to $92.25. This rebound follows a volatile Wednesday session and reflects growing skepticism that a 15-point U.S. proposal which includes demands for Iran to halt uranium enrichment and curb its ballistic missile program will be accepted by Tehran.

Supply Disruptions: The Strait of Hormuz and Russia

The International Energy Agency (IEA) has characterized the current situation as the largest oil supply disruption in history. The blockade of the Strait of Hormuz has paralyzed nearly 20% of the world's crude and LNG shipments. Compounding this, Reuters calculations indicate that 40% of Russia’s oil export capacity is currently offline due to a combination of:

Ukrainian drone strikes on refineries.

Strategic seizures of oil tankers.