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Oil Price Today (March 16): Crude oil gains 1%, above $100 on Trump’s latest threat to Iran. Here’s why
Crude oil price on March 16
Brent crude also climbed by nearly a percent to trade above almost $105 per barrel in early trade. It traded marginally lower in early hours.
In a post on Truth Social, Trump said he had ordered strikes on Iranian military assets on Kharg Island on Friday but avoided targeting oil infrastructure. However, he warned that if Iran continues attacking tankers in the Strait of Hormuz, the US could reconsider its decision.
The development gains significance as Kharg Island holds critical importance for Iran’s oil exports. Data shows that nearly 90% of the country’s oil shipments pass through the island.
A direct strike on the island’s export terminal would affect the majority of Iran’s crude exports. Such an attack could also trigger retaliation from Iran, either in the Strait of Hormuz or against energy infrastructure across the region, experts say.
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Separately, Iranian drones struck a key oil terminal in Fujairah in the United Arab Emirates shortly after the attacks on Kharg. Four sources said oil loading operations at Fujairah have since resumed, although it remains unclear whether activity has returned fully to normal.
Fujairah, which lies outside the Strait of Hormuz, serves as the export outlet for about 1 million barrels per day of the UAE’s flagship Murban crude, a volume that accounts for roughly 1% of global demand.The US is also evaluating several high risk options on the ground. These include raiding Iranian nuclear sites to seize enriched uranium, taking control of the Kharg Island oil hub, and occupying parts of southern Iran to secure the Strait of Hormuz. He noted that each of these options would mark a significant escalation and carry substantially higher risk, SEB analyst Erik Meyersson told Reuters.
US-Iran talks soon?
US President Donald Trump said Sunday that the United States was in discussions with Iran as the war enters its third week but that Tehran was not ready for a deal to end it.
“Yes, we’re talking to them,” Trump told reporters aboard Air Force One, without detailing the nature of such talks, when asked if there was any diplomacy under way to end a conflict that has spread across the Middle East and roiled global markets.
“But I don’t think they’re ready. But they are getting pretty close,” Trump said. Iran’s foreign minister earlier denied any talks with the United States were taking place.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)