Brent crude futures rebounded toward $103 per barrel on Tuesday, recovering from the previous session’s nearly 3% decline, as markets reassessed supply risks tied to the ongoing Middle East conflict.
Latest data shows Brent trading at $103.02 per barrel on March 17, 2026, marking a 2.8% daily increase. Despite short-term volatility, prices remain sharply elevated, with crude up over 46% in the past month and year-on-year, reflecting the scale of disruption in global energy markets.
The rebound follows a brief easing of supply fears after several tankers successfully navigated the Strait of Hormuz over the weekend, raising cautious optimism that the critical shipping route may not remain fully shut.
The Strait of Hormuz, a vital chokepoint for global oil flows, has been the centre of the global energy crisis, with tensions between the United States, Israel, and Iran disrupting tanker traffic and sending shockwaves through energy markets. At the height of the disruption, the waterway was described as nearly closed, contributing to oil prices surging above $100 per barrel.
Diplomatic and logistical efforts are now underway to stabilise flows. Countries including India are negotiating additional tanker capacity, while back-channel discussions with Iran aim to guarantee safe passage for vessels. At the same time, the United States has reportedly allowed limited Iranian crude shipments to continue through the strait in an effort to prevent a deeper supply shock.
Further easing market concerns, a direct communication channel between Washington and Tehran has reportedly been activated, signalling attempts to contain escalation and avoid prolonged disruption to global oil supply chains.
On the supply side, the United States is preparing to release emergency crude reserves, while the International Energy Agency (IEA) has indicated that additional global stockpiles could be tapped if needed, a move aimed at cushioning markets against sustained shortages.
Still, analysts caution that the situation remains fragile. The recent volatility underscores how sensitive oil markets are to developments in the Gulf, where even partial disruptions can trigger significant price swings. Goldman Sachs estimates that while the current shock may not derail global supply chains broadly, it could still raise inflation and dampen global growth.
