Oil prices rebound amid extreme volatility from Iran war

Oil prices rebounded on Tuesday morning after a sharp decline the previous day, as investors reassessed the impact of the Iran conflict on global crude supply.

According to Bloomberg, prices rose on March 17, 2026, after dropping more than 5% on Monday, as markets weighed threats to Middle Eastern supply alongside signs that additional crude could enter the market.

West Texas Intermediate (WTI) crude traded at around $95 per barrel, while Brent crude remained above $100 for a third consecutive day.

Prices had fallen earlier as the US Department of Energy prepared to release the first tranche of emergency crude reserves, while the International Energy Agency (IEA) signalled that further stockpiles could be tapped.

Iran has stepped up attacks on regional energy infrastructure, including a drone strike on a major natural gas field in the United Arab Emirates.

At the same time, US President Donald Trump said Washington was “hammering” Iran’s military capability to threaten commercial shipping through the Strait of Hormuz, a vital global energy corridor that has been effectively closed since the war began late last month.

Trump also warned of expanding strikes on Kharg Island, Iran’s key oil export hub, after US forces targeted military sites there over the weekend while avoiding energy infrastructure.

US Treasury Secretary Scott Bessent told CNBC that the US is currently allowing some Iranian crude shipments to continue through the Strait of Hormuz.

In response to the crisis, the United Arab Emirates and Kuwait have reduced oil production, while Saudi Arabia and the UAE are accelerating exports via alternative routes that bypass the Strait of Hormuz.

The market continues to feel the aftershocks of one of the most volatile weeks in Brent crude trading history, with unusually wide daily price swings. The IEA has described the current situation as one of the largest supply disruptions ever seen in the global oil market.

Dennis Kissler, senior vice president of trading at BOK Financial Securities, said oil prices above $100 per barrel are often unsustainable, as demand tends to weaken quickly.

“Crude prices that surge into triple digits typically don’t last long because demand destruction follows rapidly,” he said.

He added that while Iran appears resilient, its military limitations and isolation from regional trade could eventually push it towards negotiations.

Axios reported, citing unnamed sources, that direct communication channels between the US and Iran have recently been reactivated.

On Monday, Trump also confirmed he had asked China to delay a summit with President Xi Jinping by about one month, saying it was important for him to remain in Washington to oversee the war.

Latest oil price update

WTI crude for April delivery rose 1.6% to $94.95 per barrel at 6:50am Singapore time.

Brent crude for May delivery fell 2.8% to settle at $100.21 per barrel in New York on Monday.