Stories

Thu, 12 Mar 2026

Thu, 12 Mar 2026 What on earth is going on with the oil price?

Oil price moves have made headlines since the Iran conflict started - but why have there been such sharp swings?

* Oil prices have been highly volatile over the past two weeks, with significant rises and falls becoming a new norm.
* Brent crude, an international benchmark for oil, has seen huge price swings due to concerns about supplies in the months ahead.
* Before the US-Iran conflict began, oil was trading at around $71 a barrel, but prices rose sharply as soon as hostilities started.
* The price of Brent crude peaked at almost $120 a barrel last week after Qatar's energy minister warned that Gulf oil and gas exporters could stop production within days.
* However, reports of a possible release of emergency stockpiles co-ordinated by the International Energy Agency (IEA) led to a sharp fall in prices.
* US President Donald Trump's comments on the conflict also contributed to price fluctuations, with the price dropping nearly $30 from its peak.
* The IEA has since announced that dozens of countries have agreed to release a record amount of oil from their emergency reserves, but experts say this is only a "sticking plaster" solution and prices may continue to rise.
* The shortage of refining capacity means that releasing reserves will not immediately boost the flow of refined products like petrol and jet fuel.
* Oil trading has become increasingly uncertain due to the conflict's unpredictable nature and the impact on supplies through key waterways like the Strait of Hormuz.