---
title: 'Uncertainty Over Iran Conflict Sends Oil Prices Surging and Sliding'
url: 'https://thediplomaticinsight.com/uncertainty-iran-war-oil-prices-surge-slide/'
author: 'News Desk'
date: '2026-03-11T10:48:03+05:00'
categories:
  - 'Economy'
  - 'Middle East'
---

# Uncertainty Over Iran Conflict Sends Oil Prices Surging and Sliding

Global oil prices swung sharply this week as markets reacted to the escalating war involving Iran, the United States and Israel, along with conflicting signals from political leaders about where the conflict is headed.

Crude prices surged dramatically in early trading, briefly rising by as much as 50 percent and approaching $120 per barrel before retreating later in the day. Despite the pullback, oil remains roughly 17 percent higher than it was before the latest escalation started on February 28.

Energy markets have been particularly sensitive to developments around the Strait of Hormuz, the shipping route through which about one-fifth of the world’s oil supply passes.

Disruptions and security fears in the waterway have sharply reduced tanker traffic and [heightened concerns about global supply shortages.](https://thediplomaticinsight.com/aramco-warns-global-oil-shock-hormuz-strait-remains-blocked/)

The volatility in the oil markets intensified after a series of mixed messages from the United States officials regarding the conflict and oil shipments through the region.

**Read More: [G7 Energy Ministers to Address Surging Prices Amid Iran War](https://thediplomaticinsight.com/g7-energy-ministers-address-surging-energy-prices/)**

At one point, a senior US official claimed that the navy had escorted a tanker safely through the strait, a statement that was later retracted by the White House. The confusion triggered sudden shifts in crude prices, driven by uncertainty about Washington’s strategy.

Markets were also influenced by comments from US President Donald Trump suggesting the war could end “very soon,” which helped push oil prices lower after the earlier spike. B

rent crude fell from a high near $119.50 to around $91.70 following the remarks, as traders reassessed the likelihood of prolonged supply disruptions.

At the same time, the International Energy Agency (IEA) has discussed a potential large-scale release of strategic oil reserves, possibly the largest in its history, to counter rising prices and supply risks tied to the war.

About 20 million barrels of oil pass through the Hormuz strait each day under normal conditions, making it one of the most critical chokepoints in the global energy system.

For now, traders remain on edge, with oil markets reacting almost instantly to new developments on the battlefield and statements coming from the United States officials primarily.