Crude Oil Prices Surge 5% Amid Tensions Over US-Iran Ceasefire Prospects

Global Energy Crisis Deepens as Crude Oil Prices Rise

Brent crude prices surged 5.4% to $102.49 per barrel on Thursday, March 26, as traders grew increasingly skeptical about the prospects of a ceasefire between the US and Iran. This marks a rebound of nearly 10% from the previous session's low of $93.45.

US benchmark crude also gained 5.4% to $95.2 per barrel. The upward trajectory in crude oil prices is attributed to the ongoing month-long conflict between the US and Iran, which has triggered a global energy crisis and raised concerns over economic stability.

Geopolitical tensions intensified as US President Donald Trump warned Iran to "get serious" about a deal to end the conflict. Despite Iran's rejection of US proposals and its own conditions, markets interpreted the latest developments as a possible shift toward negotiations.

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The conflict has centered around the Strait of Hormuz, a critical passage through which nearly one-fifth of the world's oil supply flows. Iran has effectively shut the passage in response to US and Israeli strikes, severely disrupting global oil flows.

The disruption has prompted major central banks to adopt a cautious stance, revising inflation forecasts upward and delaying rate-cut expectations. Markets have also scaled back expectations of US Fed rate cuts in 2026, compared with earlier projections of up to three cuts at the start of the year.