Oil breaches $100 amid Hormuz threats
Commodity markets are seeing major volatility from Middle East risks, with Brent crude briefly topping $100/bbl amid Strait of Hormuz threats [https://x.com/i/status/2031696934868804031]. On March 11, crude oil jumped 7.53% to ₹7,980, followed by another 6.25% rise to ₹8,614 on March 12 [https://x.com/i/status/2031696934868804031]. Energy is outperforming amid global supply fears, while base metals are mixed [https://x.com/i/status/2032326936639558122].
The Strait of Hormuz crisis, sparked by US-Israeli strikes on Iran in late February 2026, has sent shockwaves through global energy markets. Iran's retaliation, including warnings against vessel passage, has effectively halted shipping traffic, disrupting approximately 20% of the world's daily oil supply. Brent crude prices initially surged past $100 per barrel on March 8, reaching a peak of $126. The International Energy Agency (IEA) responded by announcing the release of 400 million barrels of emergency oil reserves from its member countries. This is the largest emergency oil reserve release in the agency's history. Despite this intervention, concerns remain about prolonged supply shortages and further destabilization of geopolitical dynamics. Experts warn of "cascading effects" on global supply chains, extending beyond oil to critical metals, fertilizers, and helium. The disruption has blocked an estimated 250 million barrels of oil from leaving the Persian Gulf, driving up fuel prices globally. Some analysts suggest that if the Strait of Hormuz remains closed, oil prices could climb as high as $150 or even $200 per barrel.
