Oil Climbs Above $100 As Iran War Drags Into 3rd Week

March 16, 2026 5:00 pm

Oil prices rose above $100 per barrel on Monday while most Asian stock markets fell, as the ongoing US–Israel war on Iran entered its third week with no sign of de-escalation. Diplomats are also working to ensure the safe passage of oil tankers through the Strait of Hormuz, a critical global energy corridor.

Crude prices surged early Monday after Donald Trump said US forces had struck military targets on Kharg Island, which handles most of Iran’s oil exports. He also warned that attacks could expand to energy infrastructure if Iran interferes with shipping in the strait.

However, Iran’s Fars News Agency reported that the strikes caused no damage to oil facilities. The waterway has been effectively closed since military operations began on February 28.

Trump urged other countries to deploy naval forces to protect the shipping route, naming China, France, Japan, South Korea and the United Kingdom. However, Japan said it was not considering a maritime security mission, while Australia also ruled out sending naval vessels to the region.

Trump also claimed Tehran was seeking a deal to end the fighting but said Washington would not accept negotiations under the current conditions. In response, Iran’s Foreign Minister Abbas Araghchi said Tehran had no interest in talks with the United States.

Araghchi said Iran had been in negotiations with Washington before the attacks began and therefore saw no reason to continue discussions. He added, however, that Iran was willing to talk to other countries about guaranteeing the safe passage of their ships through the strait.

Meanwhile, hostilities continued across the region. Saudi Arabia said it intercepted more than 60 drones overnight, while flights were temporarily suspended at Dubai International Airport after a drone-related incident sparked a fire nearby.

Global markets remained under pressure amid fears of a prolonged energy crisis. Brent crude briefly rose to about $106.50 before settling near $104, while West Texas Intermediate climbed above $100. Analysts warned that prolonged disruption to shipping through the Strait of Hormuz could tighten oil supplies and fuel global inflation.