---
title: 'Oil Prices Rise as Supply Fears Persist Amid Iran War'
url: 'https://thediplomaticinsight.com/oil-prices-rise-supply-fears-persist-iran-war/'
author: 'News Desk'
date: '2026-03-24T14:17:14+05:00'
categories:
  - 'Economy'
tags:
  - 'Donald Trump'
  - 'Iran War'
  - 'Oil Prices'
  - 'power'
  - 'United States'
---

# Oil Prices Rise as Supply Fears Persist Amid Iran War

**Washington (TDI):** Oil prices moved higher in early trading on Tuesday as markets weighed ongoing supply risks, after Iran denied holding any talks with the United States, contradicting claims by President Donald Trump that a deal could be close.

Brent crude rose by $1.06, or 1.1%, to $101 per barrel, while US West Texas Intermediate (WTI) gained $1.58, or 1.8%, to $89.71. The uptick followed a sharp drop of more than 10% in the previous session, triggered by Trump’s announcement of a five-day delay in planned strikes on Iranian power infrastructure.

Trump had said Washington held “productive” discussions with Iranian officials and that the two sides were nearing agreement on key issues. However, Tehran dismissed those claims, calling them an attempt to influence global markets. Iran’s Revolutionary Guards also announced fresh attacks on US-linked targets and described Trump’s remarks as “psychological operations.”

Market analysts say the temporary pause in military action has eased some immediate pressure on oil prices, but uncertainty remains high.

The conflict has severely disrupted shipments through the Strait of Hormuz, a key global energy route responsible for transporting nearly one-fifth of the world’s oil and liquefied natural gas. While a small number of tankers have managed to pass through, overall flows remain constrained.

**Read More: [War Disrupts Supply, Sends Middle East Oil Benchmarks Soaring](https://thediplomaticinsight.com/war-disrupts-supply-sends-middle-east-oil-benchmarks-soaring/)**

Analysts expect oil prices to remain volatile in the near term. Investment bank Macquarie said prices are likely to stay within a floor range of $85–$90 per barrel, with the potential to climb back toward $110 if tensions persist. In a worst-case scenario, Brent could reach as high as $150 per barrel if disruptions continue into late April.

Meanwhile, ongoing strikes have damaged energy infrastructure across the region. Reports from Iran indicated that gas facilities in Isfahan and Khorramshahr were recently hit, adding to concerns over supply stability.

To ease shortages, the United States has temporarily relaxed sanctions on Russian and Iranian oil shipments already at sea. Industry sources say some of this crude is now being offered to buyers, including Indian refiners, at a premium.

**Read More: [Oil Again Hits $100 Amid Iran War, Stocks Fall and Dollar Strengthens](https://thediplomaticinsight.com/oil-hits-100-iran-war-stocks-fall-dollar-strengthens/)**

The International Energy Agency is also in consultations with governments in Asia and Europe on the possible release of strategic reserves if the situation worsens.

Energy officials and industry leaders have warned that a prolonged conflict could have serious consequences for the global economy, although US Energy Secretary Chris Wright has downplayed the immediate risks.