Brent Near $112 As US-Iran Tensions Keep Oil Prices Elevated

Crude oil prices held firm on 23 March, with Brent crude trading above $110 per barrel and West Texas Intermediate (WTI) hovering near $98–$100.

WTI crude was around $98.67 per barrel at 7:55 am IST, while Brent crude was near $112.02 at the same time.

The market has already seen a sharp run-up, with prices climbing over 50% since the Middle East conflict began. Yet, despite rising tensions, Monday’s price action remained cautious rather than explosive.

What Is Keeping Oil Prices Elevated Right Now?

At the centre of the story is the Strait of Hormuz. Nearly one-fifth of global oil and gas flows pass through this narrow route, and right now, it is effectively at the heart of the conflict.

Over the weekend, US President Donald Trump gave Iran a 48-hour deadline to reopen the strait. The warning was direct. If not complied with, energy infrastructure could be targeted. Tehran’s response was just as firm, signalling that any attack would invite broader retaliation across the region.

That exchange has kept traders on edge. Prices stayed calm on Monday morning. Brent edged lower, while WTI struggled to hold above $100. Markets are holding back, waiting for clearer direction instead of reacting too quickly.

There is also a supply-side counterbalance. The US has allowed the sale of Iranian oil already stored at sea. That extra supply, though temporary, has eased immediate fears. Asian buyers, including Indian refiners, are reportedly assessing fresh purchases.

Is The Market Being Pulled In Two Directions?

Right now, oil is reacting to two very different forces.

On one side, there is real disruption. Parts of the Middle East have seen production cuts, and shipping through Hormuz has slowed sharply. Some estimates suggest millions of barrels per day are already affected. That kind of supply shock would usually send prices soaring.

On the other side, traders are not fully committing to that view yet. After weeks of gains, many are booking profits. There is also uncertainty around whether the situation will escalate or cool off after the deadline.

This push and pull is showing up in price behaviour. Oil is staying high, but not breaking out aggressively.

The impact is spreading beyond commodities. Asian equity markets slipped on Monday. There are renewed concerns about inflation, especially if fuel costs stay elevated. Airlines have already hinted at fare hikes, pointing to rising jet fuel prices.

Also Read - The Indian Rupee Hits A New Low Of ₹93.84 Against The US Dollar

What Happens If Tensions Escalate Further?

The next move in oil may come down more to decisions than data.

If the US goes ahead with its warning, or Iran tightens control over the strait, prices can move fast. In extreme cases, some estimates even see a push towards record highs.

At the same time, global institutions are beginning to sound cautious. The International Energy Agency has flagged the situation as a serious risk to economic stability. Higher oil prices could complicate the path for central banks that are already dealing with inflation pressures.

For now, the market seems to be pausing. Prices are high, tensions are real, but traders are waiting to see what actually happens next.

Sources

Times of India

CNBC TV18

CNBC

The New Indian Express