Oil Prices Surge Amid Iran Conflict; Global Energy Body Compares to 1970s Crises

Mo. Basuony

Published: March 23, 2026 7:24 AM ET

Oil Prices Surge Amid Iran Conflict; Global Energy Body Compares to 1970s Crises

Global oil markets climbed Monday after renewed threats from the United States and Iran against energy infrastructure in the Middle East. Traders reacted as the conflict moved into its fourth week and risks to supply routes intensified.

Prices and market reaction

Brent crude rose about 1% to near $113 a barrel. West Texas Intermediate increased roughly 0.8% to about $99 a barrel. Equity markets fell sharply in response.

Asia saw steep declines. South Korea’s Kospi dropped 6.5%. Japan’s Nikkei and Hong Kong’s Hang Seng each fell around 3.5%. European markets were down about 2% in the morning session.

Threats to energy infrastructure

On Saturday, President Donald Trump warned that the United States would “obliterate” Iranian power plants if Tehran did not reopen the Strait of Hormuz by Monday evening. He had described winding down the conflict just a day earlier.

Iran’s Islamic Revolutionary Guard Corps vowed to retaliate against any strikes on its electricity network and said it could keep the strait closed indefinitely. The IRGC warned, “If you strike electricity, we will strike electricity.” Iran also signaled potential strikes on Israeli energy and communications targets, and on facilities in countries hosting U.S. forces.

Political statements and escalation

Parliamentary Speaker Mohammed Baqer Qalibaf posted on X that attacks on Iranian infrastructure would make regional critical facilities legitimate targets. Those remarks raised further concerns about widening damage to energy systems.

IEA assessment and supply impacts

International Energy Agency chief Fatih Birol said the current disruption from the Strait of Hormuz closure has cut global oil supply by more than the 1970s oil shocks. He told the National Press Club of Australia that losses now exceed the consecutive 1973 and 1979 crises.

Birol reported at least 44 energy assets severely or very severely damaged across nine countries. He added that natural gas losses surpass disruptions seen during the 2022 crisis tied to Russia’s invasion of Ukraine.

Wider industrial consequences

Birol warned that the impact goes beyond hydrocarbons. Petrochemicals, fertilizers, sulfur and helium trade have been interrupted. He said such disruptions could have serious global economic consequences.

He urged reopening the Hormuz trade as the most important remedy. The agency is discussing increased output with countries like Canada and Mexico.

Strategic stock releases and policy moves

IEA member states agreed on March 11 to release a record 400 million barrels from strategic reserves. The move aims to ease the supply crunch and limit price spikes.

Birol said the IEA can consult with governments about further releases of crude and oil products if necessary. He cautioned that stock releases can reduce pain but are not a long-term solution.

U.S. actions on Iranian oil

The U.S. administration lifted sanctions temporarily on Iranian crude at sea. That move cleared about 140 million barrels held on tankers for sale.

The U.S. Energy Information Administration estimated that amount equals roughly a day and a half of global oil demand.

Analyst views and outlook

Market strategists warned that the conflict is entering a new, more dangerous phase. Neil Wilson of Saxo described a heightened risk of long-term effects on energy markets.

Traders and policymakers now face uncertainty over further supply disruptions and the potential need for additional stock releases.