US oil prices up nearly US$3 as Middle East crisis constrains supply

2026-03-11 - 00:34

War in Iran is cutting Gulf oil supply by around 15 million barrels per day, a disruption that could raise crude prices toward US$150 per barrel. (EPA Images pic) TOKYO: US West Texas Intermediate (WTI) crude oil prices rose by US$2.90 per barrel, or 3.5%, to US$86.33 in early trade today as supplies from the Gulf remain constrained amid the US and Israeli war on Iran. Brent futures start trading at 1am. WTI rebounded after both contracts plunged by more than 11% yesterday, the steepest percentage drop since 2022, a day after US president Donald Trump predicted a quick end to the war. The US and Israel pounded Iran yesterday with what the Pentagon and Iranians on the ground called the most intense airstrikes of the war. The US military also “eliminated” 16 Iranian mine-laying vessels near the Strait of Hormuz yesterday, the US Central Command said, as Trump warned any mines laid in the Strait by Iran must be removed immediately. Trump has repeatedly said the US is prepared to escort tankers through the Strait of Hormuz when necessary. However, sources told Reuters the US Navy has refused requests from the shipping industry for military escorts as the risk of attacks is too high for now. “We continue to expect crude oil to remain highly volatile, driven by headlines while trading within a wide range between US$75ish and US$105ish in the sessions ahead,” Tony Sycamore, market analyst with IG in Sydney, said in a note. On Monday, crude oil prices surged to a session high above US$119 a barrel, their highest since June 2022, and G7 officials have since gathered online to discuss a potential release of emergency oil stockpiles to soften the market blow. French president Emmanuel Macron will host a video call with other G7 country leaders today to discuss the impact of the conflict in the Middle East on energy and measures to address the situation. War in Iran is currently cutting Gulf oil and oil products supply to the market by some 15 million barrels per day which could raise crude prices to US$150 per barrel, according to research and consultancy firm Wood Mackenzie. Reflecting higher demand, US crude, gasoline and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures yesterday.