Oil Prices͏ Surge ͏As Trump Seeks ͏Coali͏tion to Reopen Strait Of Hormuz

Mumbai, March 16: Global͏ oil pr͏ices co͏ntinued to͏ climb ͏on M͏onday ͏as the͏ ͏ongoing US-Iran conflict ͏dis͏rupte͏d͏ t͏raf͏fic through t͏he Strait of Hormuz͏, the key waterwa͏y responsible f͏or nearly a fifth of ͏the wor͏ld’s oil supply. Bren͏t cr͏ude ͏to͏pp͏e͏d $͏106 per͏ ba͏rrel i͏n early tradi͏ng bef͏ore easing slightly to͏ $104.73, r͏efl͏ecting heigh͏ten͏ed͏ concerns͏ over en͏ergy security a͏n͏d escalati͏ng geopolitical tensions in West Asia.

Brent Cru͏de ͏Hi͏ts $1͏06 Following͏ US Str͏ikes On Kharg Island

Brent c͏rude futures surged to $͏106.50 per barrel arou͏nd 03:45 I͏ST on͏ Monday, up from the previous͏ close of $1͏03.14, mark͏ing a ͏more th͏an͏ 4͏0 pe͏r c͏ent͏ incre͏ase since the war began on 28 Fe͏bruary͏. The rise follo͏wed US military s͏trikes on Kharg ͏Isl͏and, Ir͏an’s primary oil-export terminal, which ͏handle͏s roughl͏y 90 per ͏cent of the͏ count͏ry’s crude shipmen͏t͏s͏. We͏st Texas In͏termediate͏ (WTI) fu͏ture͏s, the US be͏nchmar͏k, climbed to $99.9͏5 per barrel, n͏earl͏y reachi͏ng $100, ref͏lec͏t͏ing th͏e ripple eff͏ect of supply disruptions ͏on international͏ crud͏e prices.

Trump Calls for International Naval Coalition To Secure Strait

US President Donald Trump urged allied nations, including China, Japan, France and the UK, to contribute warships to escort commercial shipping through the Strait of Hormuz. Despite his call, responses from these countries have been muted, with Japan and Australia explicitly stating they have no plans to deploy naval forces. Trump warned that NATO could face a “very bad” future if his appeal received no or negative responses. The proposal comes amid Iran halting nearly all shipping through the strait in retaliation for US and Israeli strikes on its military infrastructure.

Shipping Activity Plummets to Historic Lows Amid Conflict

Data from the United Kingdom Maritime Trade Operations (UKMTO) shows that only five vessels have transited the Strait of Hormuz daily since the conflict began, compared with the historical average of 138. At least 16 commercial vessels have been attacked in the region since 28 February, further limiting oil flows. The International Energy Agency (IEA) described the disruption as the largest in history, prompting oil producers to cut output as crude has limited avenues for shipment.

Fujairah Hub Resumes Operations After Drone Strikes

The United Arab Emirates restarted loading operations at its key port of Fujairah on Sunday, a day after drone strikes temporarily halted exports. While this provides some relief, the strait itself remains blocked, maintaining a severe bottleneck in global crude transport. Brent crude rallied 11 per cent last week, reaching $119.50 per barrel, before easing back to just above $104 amid continued volatility in the Gulf.

US Navy Poised to Escalate Escort Operations if Needed

Trump administration officials confirmed that the US Navy’s Fifth Fleet is ready to escort commercial vessels if Iran threatens the strait further. While immediate deployment is withheld until Tehran’s military capacity is degraded, US officials emphasised the potential for future naval operations to ensure the safe passage of tankers carrying oil and liquefied natural gas from the Persian Gulf.

Oil Volatility Impacts Wall Street and Global Markets

Rising crude prices have already weighed on global equities. On Friday, the Dow Jones Industrial Average fell 0.3 per cent to 46,558.47, the S&P 500 dropped 0.6 per cent to 6,632.19, and the Nasdaq Composite closed 0.9 per cent lower at 22,105.36. Asian markets showed mixed trends on Monday, with Tokyo’s Nikkei 225 down 0.4 per cent to 53,609.49, the Kospi rising 0.6 per cent to 5,521.17, and the Hang Seng climbing 1.1 per cent to 25,755.53, reflecting the regional response to oil-driven inflation pressures.

IEA Announces Record 400 Million Barrel Emergency Release

In response to surging oil prices, the International Energy Agency (IEA) declared the release of 400 million barrels from emergency reserves, the largest ever coordinated move. Reserves from Asia and Oceania will be released immediately, while European and American supplies will be deployed later in March. Around 72 per cent of the release comprises crude oil, with the remainder being refined products, aiming to stabilise global markets amid ongoing production and shipping disruptions.

Retail Fuel Prices Remain Stable In India Despite Volatility

Despite international turbulence, domestic petrol and diesel prices remained unchanged on Monday. In Mumbai, petrol retails at Rs 103.49 per litre and diesel at Rs 90.03 per litre, while in Delhi, petrol is priced at Rs 94.77 per litre and diesel at Rs 87.67 per litre. Fuel pricing in India is influenced by crude oil costs, the rupee-dollar exchange rate, and central and state taxes. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) manage fuel distribution nationwide.

Consumer Inflation and Economic Pressures Rise Amid Oil Spike

Higher crude prices have exacerbated inflation concerns, with US consumer prices rising 2.8 per cent year-on-year in January, and core inflation excluding food and energy at 3.1 per cent, the highest in nearly two years. Economic growth remains modest, with the US GDP increasing at a 0.7 per cent annual rate in the October-December quarter, reflecting the combined effects of supply shocks and the lingering government shutdown in late 2025.

Escalating tensions in the Gulf and continued disruption of the Strait of Hormuz have pushed Brent crude above $106, highlighting the sensitivity of global energy markets to geopolitical events. The IEA’s emergency oil release aims to stabilise supply, while the US seeks allied cooperation to ensure secure transit, underscoring the intertwined risks of conflict, shipping disruption, and market volatility.