Oil prices rebound above $100 as Hormuz concerns persist

Tuesday 17 March 2026 - 13:50

By: Dakir Madiha

Oil prices rebound above $100 as Hormuz concerns persist

Oil prices rose sharply on Tuesday as renewed concerns over the Strait of Hormuz erased the previous day’s relief rally, highlighting ongoing disruption in one of the world’s most critical energy corridors.

Brent crude climbed nearly 3 percent to around $103 per barrel, while US benchmark West Texas Intermediate rose to about $96. The rebound followed a steep drop on Monday, when prices fell after several tankers successfully crossed the strait, briefly easing fears of prolonged disruption.

The Strait of Hormuz, which handles about 20 percent of global oil and liquefied natural gas shipments, has effectively been closed since late February following US and Israeli strikes on Iran. Iran’s Revolutionary Guard has blocked tankers linked to the United States, Israel and allied countries from transiting the route. The disruption has forced production cuts and left around 1,000 vessels stranded in the Gulf region, according to industry data.

US stock markets had rallied on Monday as oil prices fell. The S&P 500 rose 1 percent to its strongest daily gain in five weeks, while the Dow Jones Industrial Average and Nasdaq Composite also posted solid gains. Lower oil prices had temporarily eased inflation concerns and supported investor sentiment.

Technology stocks contributed to the advance, with Nvidia gaining 1.6 percent after projecting that demand for AI chips could reach $1 trillion by 2027. However, US futures turned lower on Tuesday, with both S&P 500 and Dow futures down about 0.3 percent.

Asian markets showed mixed performance. Japan’s Nikkei 225 and South Korea’s Kospi both advanced, while Hong Kong’s Hang Seng rose about 1 percent. China’s Shanghai Composite edged lower. Australia’s S&P/ASX 200 moved higher after the Reserve Bank of Australia raised interest rates to 4.1 percent in response to inflation pressures.

Market analysts said sentiment remains fragile, shifting quickly with movements in oil prices. Investors are now focused on the US Federal Reserve’s policy decision, with expectations that rates will remain unchanged as policymakers assess the impact of elevated energy costs.