Sharp rise in crude oil prices
What’s happening:
Crude oil prices experienced a sharp rise this morning as growing concerns over the escalating conflict in the Middle East unsettled investors.
What happened:
The increase followed developments over the weekend, with Yemen’s Iran-supported Houthi rebels entering the fray, heightening tensions in the region.
Further pushing prices upward was the announcement of additional US troop deployments to the area, fueling uncertainty and driving market reactions.
Oil prices jump as Iran war escalates
Brent crude oil prices have surged approximately 54% in the past month, driven by the Middle East conflict that has resulted in the closure of the Strait of Hormuz, a critical passageway for around 20% of global oil and gas supplies.
The conflict, which began on February 28, has escalated across multiple fronts. Yemen's Houthi rebels, citing their opposition to the US-Israeli offensive on Iran, launched their first attack on Israel over the weekend. The Houthis have warned that they will continue these assaults until military strikes against Iran come to an end. With capabilities to target shipping lanes in the Red Sea and key energy infrastructure in Saudi Arabia, their actions pose significant risks to regional stability.
Meanwhile, Saudi Arabia has been rerouting its crude oil exports previously reliant on the Strait of Hormuz through the Red Sea's Yanbu port. Last week, these rerouted exports hit 4.658 million barrels per day (bpd), according to data from analytics firm Kpler.
The situation has also drawn heightened US military attention. Reports indicate that the US is considering deploying thousands of troops for potential ground operations in Iran. President Trump once again extended his deadline for military strikes against Iran’s energy infrastructure, this time issuing a 10-day ultimatum after a series of shorter warnings.
Oil prices have also been influenced by a strengthening US dollar amidst speculation that the Federal Reserve may hike interest rates to combat inflation. Since commodities like oil are priced in dollars, a stronger US currency makes them more expensive for buyers using other currencies. This morning, the US dollar index rose to 100.19, reflecting gains against a basket of major currencies.
Amid these developments, energy markets exhibited significant volatility. West Texas Intermediate (WTI) crude prices jumped about 12%, reaching $103.06 per barrel, while Brent crude soared 11.3% to $112.68 per barrel. Gasoline climbed 2.6% to hit $3.2731 per gallon, and heating oil rose 3% to $4.3616 per gallon. In contrast, natural gas bucked the trend, with prices falling 2.8% to $2.941.
Oil prices rise as crude surges amid Houthi involvement in Iran conflict
Key focus areas:
Investors are closely monitoring the progress of discussions between the US and Iran aimed at resolving the current conflict.
Another key event on the radar is the release of data from the Energy Information Administration (EIA) regarding changes in crude oil stock levels, set for Wednesday. US crude inventories saw a significant increase of 6.926 million barrels, reaching 456.2 million barrels for the week ending March 20. This marks the fifth consecutive weekly rise in crude stockpiles.
Oil prices today
Brent crude, poised for a record-breaking monthly gain, jumped over 3% at the market’s opening, reaching US$116.43 per barrel. This follows its 4.2% increase at the close of trading on March 27.
PHOTO: EPA
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Published Mar 30, 2026, 07:43 AM
Updated Mar 30, 2026, 08:53 AM
SINGAPORE – Oil prices climbed on March 30 as tensions escalated in the Middle East, with Iran-backed Houthi militants in Yemen joining the ongoing conflict. The arrival of additional US troops in the region added to concerns that the intensifying skirmishes could further destabilize energy markets.
Brent crude surged over 3 percent at the market's opening, reaching $116.43 a barrel, building on a prior gain of 4.2 percent recorded on March 27. This positions Brent crude for a record monthly surge. Meanwhile, US West Texas Intermediate (WTI) crude rose by 3.1 percent to $102.77 a barrel after achieving a 5.5 percent increase in the previous trading session.
Though the Houthi faction has not explicitly stated intentions to target vessels navigating through the southern Red Sea or the Bab el-Mandeb Strait, their capabilities suggest the potential exists. Similarly vulnerable is the Saudi Arabian port of Yanbu, a critical export hub currently being used as an alternative following the effective closure of the strategic Strait of Hormuz due to the escalating conflict. Yanbu falls within the range of Houthi missiles, amplifying regional risks.
"The threat posed by the Houthis to Saudi oil infrastructure and exports through the Red Sea is akin to denying bypass surgery that had successfully mitigated the immediate crisis from the Strait of Hormuz closure," commented Mukesh Sahdev, chief executive of XAnalysts.
Brent oil prices have surged over 50% in March amidst the ongoing conflict involving the US-Israel alliance and Iran, which has disrupted global markets and raised fears of concurrent inflation spikes and economic slowdown. Now in its fifth week, the war shows no signs of easing, despite a diplomatic effort from Washington last week and additional peace negotiations held over the weekend in Pakistan.