Oil jumps more than 3% as Hormuz disruption deepens in Iran war
Oil prices climbed for a fifth straight session on March 5, 2026, as escalating conflict involving the US, Israel and Iran intensified fears of prolonged supply disruption—especially around the Strait of Hormuz.
Brent and WTI extend rally
Brent crude rose to around US$84 a barrel (up just over 3%), while US benchmark WTI traded near US$77 (up nearly 4%) during Thursday’s session, according to Reuters.
Strait of Hormuz “near-halt” strands ships offshore
Shipping through the Strait of Hormuz—a key route for roughly one-fifth of global oil and LNG flows—has slowed to a near standstill, with Reuters estimating 200+ vessels anchored off Gulf producers and unable to transit amid the threat of attack.
Supply disruptions widen: Iraq cuts output, Qatar halts LNG
The disruption is also tightening supply elsewhere in the region. Reuters reported that Iraq, OPEC’s second-largest producer, has cut output by nearly 1.5 million barrels per day due to limited storage and export routes.
Meanwhile Qatar declared force majeure on LNG shipments and shut gas liquefaction, with sources saying a full return to normal operations could take at least a month.
Analysts: risk premium likely to stay in place
ANZ analysts said the crude market remains tight, with the central worry focused on supply risks tied to shipments through Hormuz. Separately, J.P. Morgan warned that prolonged disruption could force additional export curbs from major Gulf producers.
