MW Global oil prices trade above $103 a barrel after reports that Saudi Arabia and U.A.E. are weighing joining war against Iran
By Isabel Wang and Myra P. Saefong
The potential for further attacks on energy infrastructure in the Persian Gulf remains a key worry
Energy prices are again moving higher after a big decline on Monday.
Global oil prices passed $102 a barrel in Tuesday trading, following reports that U.S. allies in the Persian Gulf are inching toward joining the war against Iran.
Various reports that Iran has allowed some oil tankers to transit through the Strait of Hormuz have done little to temper Tuesday's rise in oil prices.
The longer it takes for the crucial maritime waterway to be fully open, the greater the risk of oil prices creeping higher, said Tariq Zahir, managing member at Tyche Capital Advisors. The risk of attacks on energy infrastructure, meanwhile, has the potential to be the catalyst for a more meaningful rise, he said.
Brent crude (BRN00) (BRNK26) for May delivery was up by 3.4% to $103.32 a barrel as of 11 a.m. Eastern time, after losing 10.9% Monday. U.S. benchmark West Texas Intermediate contracts (CL.1) (CLK26) for May delivery were up 3.9% to $91.55 a barrel, a day after losing 10.3%.
Read: It's like the sun exploding: One Wall Street firm fears $200 oil - and says it's not too late for investors to prepare
Both oil benchmarks fell sharply on Monday after President Donald Trump wrote in a post on Truth Social that the U.S. would halt strikes on Iran's power plants for five days "subject to the success of the ongoing meetings and discussions." Both Brent and WTI on Monday settled at their lowest levels since March 11, according to Dow Jones Market Data.
Market optimism has faded since Iran refuted Trump's claims that the U.S. has had "very good and productive" talks with Tehran, with Mohammad-Bagher Ghalibaf, the speaker of Iran's parliament, calling the announcement "fake news" being used to "manipulate" markets.
"Obviously much now depends on the progress of any talks, and whether the more optimistic rhetoric is followed up by concrete action," Jim Reid, head of global macroeconomic research at Deutsche Bank, wrote in a note on Tuesday, adding that "some nervousness" had crept back into markets, sending Brent crude back past the $100 threshold.
Investors' concerns regarding the future of the war in Iran were also exacerbated by a Wall Street Journal report on Monday evening that U.S. allies in the Persian Gulf are edging closer to joining the conflict. Saudi Arabia and the United Arab Emirates are mulling assistance efforts as their economies continue to be disrupted by Iranian strikes and the effective closure of the Strait of Hormuz.
The report notes that neither country has deployed its military openly yet, but pressure is increasing as Tehran continues to exert control across the region, with energy infrastructure targeted.
"Investors are still unclear about what happens next. The fog of war is thick," said David Morrison, senior market analyst at Trade Nation. "The Strait of Hormuz remains closed to just about everything, and that should continue to support energy prices. This in turn plays into fears of higher inflation, adding to concerns that were building even before hostilities began."
U.S. stock indexes were trading mostly lower after all three major benchmarks on Monday booked their biggest daily percentage gains since early February. The Dow Jones Industrial Average DJIA was up 0.2%, while the S&P 500 SPX was down 0.2% and the Nasdaq composite COMP was down 0.5%, according to FactSet data.
Nora Redmond contributed.
-Isabel Wang -Myra P. Saefong
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(END) Dow Jones Newswires
March 24, 2026 11:26 ET (15:26 GMT)
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