Hormuz traffic partially resumes as oil prices surge on Gulf attacks

Wednesday 18 March 2026 - 11:50

By: Dakir Madiha

Hormuz traffic partially resumes as oil prices surge on Gulf attacks

Global oil prices climbed sharply on Tuesday as renewed Iranian attacks on energy infrastructure in the Gulf reversed a brief decline, with Brent closing above 100 dollars per barrel and US crude gaining nearly 3 percent on the day.

The rally comes as the conflict involving the United States and Israel against Iran enters its third week, with the Strait of Hormuz largely closed to commercial traffic. The waterway typically carries about one fifth of global oil supply, making disruptions a major driver of price volatility. Since coordinated strikes began on February 28, Brent has risen roughly 38 percent.

Shipping activity through the strait remains severely reduced. The number of non Iranian vessels crossing daily has dropped from more than 100 before the conflict to fewer than 10, according to maritime tracking firms. Iran’s Revolutionary Guard declared the passage closed on March 2 and warned it could target ships attempting to cross.

Iranian officials have sent mixed signals. Foreign Minister Abbas Araghchi said the strait is “open, but closed to adversaries,” while authorities have allowed limited transit for ships flying Chinese, Indian, Pakistani and Turkish flags. Data showed eight non Iranian vessels passed through on Monday, nearly double recent daily levels but still far below normal volumes.

The disruption has forced major Gulf producers to cut output sharply. Saudi Arabia has reduced production by between 2 million and 2.5 million barrels per day, Iraq by around 2.9 million, Kuwait by about 500,000, and the United Arab Emirates by up to 800,000 barrels per day. Iraqi output from key southern fields has fallen by about 70 percent.

To stabilize supply, the 32 member countries of the International Energy Agency agreed to release 400 million barrels from strategic reserves, the largest coordinated release in its history. The United States will contribute 172 million barrels. Analysts caution that the measure offers only temporary relief and carries risks if disruptions persist.

US Energy Secretary Chris Wright said the strait remains dangerous for tankers due to missile fire and naval mines. The US Navy may begin escorting vessels through the route later this month, though military efforts remain focused on weakening Iran’s offensive capabilities.

Market analysts warn that global supply disruptions could reach up to 8 million barrels per day. Some forecasts suggest Brent could rise to between 110 and 120 dollars per barrel if the crisis continues.