Key Highlights

  • Brent crude climbed to $112.87 per barrel on Tuesday; WTI reached $102.49
  • A Kuwaiti oil tanker caught fire near Dubai following an attack attributed to Iran
  • Trump reportedly prepared to conclude military action despite Strait of Hormuz closure
  • Brent and WTI heading toward 50–54% March gains, marking one of history’s largest monthly increases
  • Gasoline prices surpassed $4 per gallon nationally, the first occurrence since August 2022

Crude oil prices remained elevated above $110 per barrel on Tuesday as ongoing Middle East hostilities continued to destabilize worldwide energy supplies.

Brent crude, the international pricing standard, gained 0.1% to reach $112.87 per barrel. West Texas Intermediate experienced a minor decline to $102.49. Both measures are projected to conclude March with gains ranging from 50% to 54%, representing one of the most substantial monthly increases in recorded history.

Brent Crude Oil Last Day Financ (BZ=F)
Brent Crude Oil Last Day Financ (BZ=F)

Gas prices at service stations breached the $4 per gallon threshold for the first time since August 2022, according to AAA data.

The market rally intensified following an incident where a Kuwaiti oil tanker ignited near Dubai’s port. The vessel’s operator blamed Iran for the assault.

Trading activity moderated somewhat after the Wall Street Journal published reports indicating President Trump informed senior officials he plans to terminate military operations against Iran, regardless of whether the Strait of Hormuz achieves full operational status.

Trump and his team determined that restoring navigation through the strait would require significantly more time than his original four-to-six week projection. The strategy involves scaling back U.S. military engagement after degrading Iran’s naval and missile systems, followed by pursuing diplomatic solutions with Tehran.

The Strategic Importance of the Strait of Hormuz

Prior to the outbreak of conflict, approximately 20% of the world’s oil and natural gas transited through the Strait of Hormuz. That critical shipping lane continues to face at least partial obstruction.

Iran’s legislative body has endorsed a proposal to impose transit fees on ships passing through the waterway, according to Iranian state media sources.

Extended closure of the strait could sustain three-digit oil valuations, creating challenges for broader equity markets.

Asian nations heavily reliant on Persian Gulf petroleum have already begun implementing energy conservation measures. Bangladesh ordered university closures. Pakistan and the Philippines instituted reduced working schedules.

Additional Conflict Zones Unsettling Markets

Yemen’s Houthi forces joined the confrontation over the weekend, launching strikes against Israel. The Houthis previously demonstrated their capacity to target maritime vessels in the Red Sea, heightening concerns about an expanding theater of war.

Iran has broadly rejected claims of conducting direct negotiations with the U.S., contradicting Washington’s assertions that diplomatic discussions were progressing favorably.

The U.S. has positioned thousands of military personnel throughout the region. Trump has reiterated warnings about potentially striking Iran’s energy and water systems if the Strait remains closed beyond April 6.

Pakistan extended an invitation to facilitate ceasefire negotiations in Islamabad. Defense Secretary Pete Hegseth and the Chairman of the Joint Chiefs scheduled a press briefing for Tuesday morning.

Multiple Persian Gulf states suspended oil extraction and export activities during the past month because of the ongoing conflict.