2026-03-27 09:02
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2026-03-27 09:02
Oil prices in the US are rising. Investors fear that the war between Israel and the US against Iran may be prolonged, leading to an increase in inflation prospects.
A barrel of West Texas Intermediate crude oil for May deliveries will increase by 1% on the NYMEX in New York. to $95.38.
The price of Brent on ICE for May increases by 1.69%. to USD 109.79 per barrel.
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The price of Brent rose by a record 49% in March and the costs of petroleum products, from diesel to jet fuel, rose even further, burdening businesses and consumers. These increases raised concerns about a simultaneous increase in global inflation and slowing economic growth.
“The market is starting to understand that there is no certain end to the conflict. As we enter another weekend, the risks are still high,” said Carl Larry, an oil and gas analyst at Enverus.
US President Donald Trump announced on Thursday that he was postponing attacks on Iranian power plants for 10 days, until Monday, April 6. On March 21, Trump threatened to destroy Iranian power plants if Tehran did not unblock the Strait of Hormuz within 48 hours. On March 23, he extended this ultimatum by five days.
The American president added that despite “erroneous reports from fake media”, the US is conducting talks with Iran, which “are going very well.” Media reports that Iran rejects the US proposal as “unilateral and unfair.”
The Israeli army carried out “extensive” air attacks on Tehran on the night from Thursday to Friday. At the same time, Iranian media reported American-Israeli strikes on the cities of Qom and Urmia, which killed at least six people. The war, which has been going on for a month, is still escalating, covering the territories of the Gulf countries.
The Wall Street Journal reported that the Pentagon was considering sending 10,000 additional troops to the Middle East, while Trump was considering using ground forces for an amphibious attack on Iran's strategic oil hub, Kharg Island.
CNN reported that the Trump administration is trying to arrange a meeting with Vice President JD Vance in Pakistan this weekend to discuss the possibility of ending the war with Iran, citing two US officials. CNN added that other high-ranking administration officials may also participate in the meeting.
The Fed's Lisa Cook said the surge in oil prices has changed the balance of risks, making inflation now a bigger concern than employment.
“Despite talks of de-escalation, the price of oil is based on the duration of the war, not just the headlines. Any direct damage to oil infrastructure or escalation could force markets to rapidly increase prices,” said Priyanka Sachdeva, an analyst at Phillip Nova.
The war has reduced global supplies by 11 million barrels a day, and the International Energy Agency has described the crisis as worse than the two oil shocks of the 1970s and the Russia-Ukraine gas war combined.
Analysts from Macquarie Group estimate that prices could rise to $200 if the war drags on until the end of June.
“Market pressures are mounting with each passing day. Asian countries are reaching for buffer stocks and considering demand adjustments,” said Mukesh Sahdev, founder and CEO of Australian consulting firm XAnalysts. (PAP Business)
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