Oil prices stay high due to Middle East conflict

As of mid-March 2026, the world is facing a severe energy crisis.

A military conflict involving the United States, Israel, and Iran has triggered a massive supply disruption in the Middle East, causing global oil prices to skyrocket.

At the heart of this issue is the Strait of Hormuz, a critical chokepoint that normally carries 20% of the world's oil supply.

The International Energy Agency reports that global production has dropped by up to 10 million barrels per day, marking the largest supply shock in history.

Brent crude prices have fluctuated between $90 and $120 per barrel as markets react with extreme uncertainty.

However, with limited global spare capacity, experts fear that prolonged instability will drive up inflation and hamper growth in energy-importing nations.

Traders are currently pricing in a high geopolitical risk premium, reflecting deep concerns about the duration of the crisis and the resilience of the global energy supply chain.