MW Oil prices rally as Pentagon reportedly plans to deploy 3,000 troops to the Middle East
By Myra P. Saefong and Isabel Wang
The potential for further attacks on energy infrastructure in the Persian Gulf is also a key worry
Energy prices are again moving higher after a big decline on Monday.
Oil futures were up sharply Tuesday, with global prices topping $104 a barrel, buoyed by a report that the Pentagon plans to deploy an airborne Army unit to the Middle East to support its operations against Iran - signaling that the situation in the region is poised to intensify.
The move "reflects the Trump administration's urgency to resolve this war and reopen the Strait [of Hormuz] as soon as possible," Matt Smith, U.S. head analyst at Kpler, told MarketWatch.
A written order to deploy the Army's 82nd Airborne Division, which is made up of roughly 3,000 soldiers, is expected in the coming hours, two U.S. officials told the Wall Street Journal.
The news has fed volatility in the oil market, and prices are likely to move higher from here, said Tariq Zahir, managing member at Tyche Capital Advisors said. It's possible that President Trump may use the American troops for securing the shoreline along the strait, he said.
Oil prices had already been moving higher in Tuesday trading following reports that U.S. allies in the Persian Gulf are inching toward joining the war against Iran.
Brent crude for May delivery (BRN00) (BRNK26) was up by 4.8% to $104.79 a barrel as of 2 p.m. Eastern time, after losing 10.9% Monday. U.S. benchmark West Texas Intermediate contracts for May delivery (CL.1) (CLK26) were up 4% to $91.66 a barrel, a day after losing 10.3%.
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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 Zahir. The risk of attacks on energy infrastructure, meanwhile, has the potential to be the catalyst for a more meaningful rise, he noted.
Both oil benchmarks fell sharply on Monday after President 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" 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.
Investors' concerns regarding the future of the war also climbed after a Wall Street Journal report Monday evening said 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.
"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 Tuesday, after all three major benchmarks on Monday booked their biggest daily percentage gains since early February. The Dow Jones Industrial Average DJIA was up 0.1%, while the S&P 500 SPX was down 0.2% and the Nasdaq Composite COMP was losing 0.7%, according to FactSet data, at last check.
Nora Redmond contributed.
-Myra P. Saefong -Isabel Wang
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(END) Dow Jones Newswires
March 24, 2026 14:25 ET (18:25 GMT)
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