Oil prices increased above $100 per barrel on Sunday for the first time in over three years ahead of the Iran war, which disrupted oil supply and shipping in the Middle East.
The price of Brent crude oil, which is the global benchmark, reached $107.97 per barrel as the trading reopened on the Chicago Mercantile Exchange, reading an increase of 16.5% when compared to its closing price of $92.69 on Friday.
Meantime, West Texas Intermediate (WTI), which is a type of crude oil produced in the United States, was recorded trading at about $106.22 per barrel, which was recorded 16.9% more than its closing price of $90.90 on Friday.
It is also imperative to note that these prices rose after a sharp increase last week, when U.S. crude oil increased by 36% and Brent crude oil went up by 28%. The oil prices are rising as the war enters its second week, which is already affecting countries and regions that are key in the production and transportation of oil and gas from the Persian Gulf.
Reports by the firm Rystad Energy also suggest that around 15 million barrels of crude oil, which accounts for nearly 20% of the world’s supply, usually pass through the Strait of Hormuz every day. But as the fears of missile and drone attacks from Iran emerge, the oil tanker travel from this route has nearly stopped. The strait lies along Iran’s northern coast and is a key passage for oil and gas shipments from countries such as Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.
Iraq, Kuwait, and the United Arab Emirates have reduced oil production as storage facilities fill up amid difficulties in exporting crude. Meanwhile, Iran, Israel, and the United States have carried out strikes on oil and gas facilities since the war began, further intensifying concerns over global supply.
The last time U.S. crude futures traded above $100 per barrel was on June 30, 2022, when prices reached $105.76. For Brent crude, the benchmark last crossed the $100 mark on July 29, 2022, when it touched $104 per barrel.
Meantime, earlier this week, The United States gave India a waiver for 30 days to purchase crude oil from Russia, aiming to keep the global oil supply stable amidst the ongoing conflict between Iran and US-Israel.
This comes ahead of the disrupting shipping routes through the Strait of Hormuz. The country purchases 40% of its oil from the Gulf region, with the Strait of Hormuz being the key route. The United States on Thursday granted India a 30-day waiver to purchase oils from Russia to meet the energy needs of the country.
“President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government, as it only authorizes transactions involving oil already stranded at sea. India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stopgap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage, “US Treasury Secretary Scott Bessent said in a post on X.
Ahead of the tweet, a statement from the Department of Treasury titled ‘Authorizing the Delivery and Sale of Crude Oil and Petroleum Products of Russian Federation Origin Loaded on Vessels as of March 5, 2026, to India’ said, “All transactions prohibited… that are ordinarily incident and necessary to the sale, delivery, or offloading of crude oil or petroleum products of Russian Federation origin loaded on any vessel, including vessels blocked under the above-listed authorities, on or before 12:01 a.m. eastern standard time, March 5, 2026, are authorized through 12:01 a.m. eastern daylight time, April 4, 2026, provided that the delivery or offloading of such crude oil or petroleum products occurs at a port.”
The war has already started affecting several aspects, with energy supply chains being one among them, unsettling global oil markets. The situation for India is even more sensitive, as the country relies heavily on imported crudes.
Last November, Donald Trump imposed sanctions on Russian oil giants Lukoil and Rosneft to pressurize Russia over the war in Ukraine, resulting in the fall of India’s imports of Russian crude to 1.1 million barrels per day in January, which was the lowest since November 2022. Meanwhile, Russia’s share in India’s total oil imports came down to 21.2% and increased to around 30% in February.
