Global crude oil prices jumped more than 4 per cent in early trading on Tuesday, even after US President Donald Trump announced a temporary pause on planned strikes targeting Iran’s energy infrastructure.
Brent crude rose to around USD 104 per barrel, up about 4 per cent, while US West Texas Intermediate (WTI) futures climbed 4.39 per cent to USD 92 in early trade today.
Surge in prices over the past weeks
Crude oil prices have seen a sharp increase in March. Between March 2 and March 23, Brent crude rose nearly 23.38 per cent, from USD 77.74 to USD 95.92 per barrel. WTI futures jumped 25.60 per cent, moving from USD 71.23 to USD 89.47.
This comes after a sudden sell-off in the previous session, when oil prices fell over 10 per cent following Trump’s announcement of a five-day pause on strikes and news suggesting potential progress in US-Iran talks.
Tensions rise again as Iran denies negotiations
Market sentiment turned cautious again after Iran rejected claims of talks with the US. Mohammad-Bagher Ghalibaf, the Iranian parliamentary speaker, stated on X that no negotiations had taken place, and warned that “fake news is used to manipulate the financial and oil markets.”
2/ No negotiations have been held with the US, and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped.
— محمدباقر قالیباف | MB Ghalibaf (@mb_ghalibaf) March 23, 2026
Further adding to supply concerns, reports emerged that two energy facilities had been hit by airstrikes, raising fears of a renewed escalation in the region. These developments contradict earlier expectations of a near term de-escalation.
The Strait of Hormuz, a critical transit route for almost one-fifth of global oil and LNG supplies, remains a source of uncertainty for traders. Potential disruptions in this region continue to support higher crude prices.
Analysts raise forecasts for 2026
Goldman Sachs analysts have also increased their oil price projections for 2026. Brent crude is now expected to average USD 85 per barrel, up 10.38 per cent from the previous forecast of USD 77. US WTI is projected at USD 79 per barrel, a rise of 9.72 per cent compared to the earlier estimate of USD 72, according to analyst Daan Struyven as per IANS reports.
The combination of geopolitical tensions, possible supply disruptions, and rising forecasts has contributed to the renewed surge in crude oil prices. Traders remain cautious as developments in the US-Iran relationship and the wider Middle East continue to influence global energy markets.
(With IANS Inputs)