Brent Crude’s Decisive Surge Toward $120 Again as Energy Infrastructure Comes Under Attack
Crude Oil movement steered upwards with attacks on Middle East Energy Facilities
Crude Oil shoots up decisively near to 120$ again!
Brent Crude again lifts to 120$!
Brent Crude Oil prices have decisively surged past the $104 resistance level on March 18th and are now trading near $118 at the time of writing. This sharp rise reflects growing market jitters driven by concerns of oil and gas supply disruptions, as the ongoing conflict between Iran, Israel, and the United States continues to damage energy infrastructure across the Middle East.
There are reports that Israel attacked Iran’s major Energy Infrastructure - South Pars, due to which Iran conducted retaliatory attacks and damaged Energy Infrastructure of US ally Qatar with attacks at Ras Laffan.
Both these attacks are concerning since South Pars is a region containing the World largest supply deposit of Natural gas, while Ras Laffen is the main region where Qatar’s LNG processing operations take place.
President Trump meanwhile has issued statement with stern message that USA can destroy South Pars Gas Field completely if Iran attacks Qatar’s Energy facilities.
Tensions are high – because Oil and Gas facilities across Middle Eastern regions are vulnerable to get damaged due to these attacks which may reduce supply of Crude Oil and Gas.
Brent Price paused its Upward movement briefly
Between March 13 – 17 Crude Oil Price got capped at 104$ as few positive developments were shaping that eased Crude Oil Supply concerns.
The most recent of which is Iraq finding an alternate route to export its Crude Oil through Turkey’s Ceyhan port.
Iran too was softening its stance towards countries not involved in war – where negotiations lead to few tankers carrying Energy Cargo to cross the route safely.
Iran had issued statement that Hormuz was closed only to its war enemies and their supporting allied partners not others.
Iran has expressed that it has plans to allow those tanker vessels pass through the route if they did Oil trade deals in Chinese Yuan instead of Dollar. This was possible as trades of sanctioned Russian Oil was taking place in Rubles or Chinese Yuan. However, such plans were not finalized.
Strait of Hormuz is closed – with normal transport activity halted and queues of vessels remain stuck at the chokepoint.
These positive developments temporarily halted further price increases from increasing temporarily, with price capped at 104$
Source - https://edition.cnn.com/2026/03/16/business/iranian-oil-exports-hormuz-strait-intl-cmd
Attacks at Energy infrastructure keeping Oil Markets nervous
Still this trending Middle East Conflict held Crude Oil Market in a constant tension. Few days before, USA had launched missile attacks at Kharge, it’s the land from where Iran exports most of its oil, and has crucial infrastructure – storing and collecting Crude Oil from other parts of Iran for export.
However, US was careful in not damaging Iran’s Energy infrastructure there. The attack was followed by President Trump’s warning – that USA can severely damage Iran’s Energy infrastructure at Kharge Island, if Iran did not open up Strait of Hormuz. It was a pressure tactic move on Iran.
Yet – these incidents and President Trump’s threat to attack sensitive areas of Iran that has Energy facilities gripped Oil Markets in tension. There was constant geo-political risk stress.
This is why Crude Oil Price is in an upward trajectory after March 9 Crude Oil shock that escalated price to 120$. Crude Oil’s Price shock effect wore off, but the Oil Market remained heated up due to geo-political conflict stress.
I had explained how the March 9’s Crude Oil Price escalation to 120$ caused inflation concerns which was reflected in Bond Markets here -:
Black Gold Shock: Crude Oil Volatility Sparks Inflation Fears
Crude Oil differential – WTI is at a discount to Brent
Meanwhile WTI Crude Oil is 100$ at the time of writing. American and Venezuelan Crude Oil is priced using West Texas Intermediate; WTI Crude Oil Price index.
WTI Oil Price crossed 100$ but closed below 100$ and is at 98$ now
USA lead by President Trump had succeeded in getting access to Black Gold Resource of Venezuela early this year following capture of President Manduro. USA has subsequently made agreements with Venezuela headed by interim President Delcy Rodriguez – to have rights over Venezuelan Crude oil.
This has USA having export rights over Venezuela’s Crude Oil – with a supply agreement of 1$ billon dollars. Sales proceeds from exported oil get credited to an American managed fund at Qatar.
Further, USA companies will be authorised to conduct Crude Oil Exploration and Production in Venezuela.
All this provide more Crude Oil earnings to USA.
Right now, there are no visible threats to US Crude Oil Production and supply as it is for Brent Crude OIL.
Crude Oil from Middle East Regions coming to Asia are priced in Brent Index.
President Trump failed attempts to force open Strait of Hormuz
President Trump’s attack pressure tactics on Iran have not succeeded in opening up of Strait of Hormuz. He also tried mobilising military support from other countries – urging them to send their warships and support USA in securing the Hormuz route which is under Iran’s grip. However, none of the countries - China, France, Japan, South Korea, the UK offered such support.
Source - https://beincrypto.com/trump-supreme-court-tariff-strait-hormuz/
Iran’s effective monopoly over Strait of Hormuz – had it continue its Energy Trade
So, Iran’s maintaining a strong grip over this important Oil corridor.
While this impacted impacted Crude Oil and Energy exports of Gulf Oil Producing countries – Qatar, Kuwait, Saudi Arabia, UAE; Iran was able to continue exporting its oil and gas using this route and earn revenues to sustain its economy.
Outlook: Markets Pricing in Risk
Crude oil markets are increasingly pricing in the economic impact of potential supply disruptions. Rising energy costs are reinforcing inflation concerns, with ripple effects across global economies.
As geopolitical tensions persist and energy infrastructure remains exposed, oil markets are likely to stay volatile. Unless there is a clear de-escalation, crude prices may remain elevated with risk-driven movements dominating the trend.
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