By Dalal Street Investment Journal (DSIJ)
Crude oil prices rose sharply on March 19 after tensions escalated following Israel’s strike on Iran’s South Pars gas field. The rally was further supported by concerns over LNG and refinery disruptions in the region, adding to fears of supply risks and deepening uncertainty across global energy markets.
Crude oil prices are once again in focus following recent developments in the Iran–Israel conflict, which have supported the ongoing upward move. The prices rose by over 6% on Wednesday, followed by a further 2% increase on Thursday.
Brent crude is trading close to its recent high of $113.73 recorded on March 9, 2026. As of 1 p.m., Brent crude is at $110, up 2.60%. WTI crude is trading at $96.67, while crude oil futures on the Multi Commodity Exchange are at ₹9,000 per barrel, indicating continued upward movement.
Here are some of the factors behind the surge in crude oil prices
Global tensions escalated on Wednesday when Israel carried out a strike on a production site at Iran’s South Pars gas field. South Pars, the world’s largest natural gas reserve,holding nearly 10% of global gas reserves, is central to Iran’s energy system, supplying a major share of domestic gas for power generation, industrial use, and heating. It also supports petrochemical production and plays a key role in sustaining the country’s overall economic activity, making it one of Iran’s most critical strategic assets, especially as the country continues to face recurring gas and electricity shortages.
The incident is part of a broader regional conflict that has expanded since a joint US-Israel military operation on February 28, 2026, in which Ali Khamenei reportedly was killed. Attention is now focused on the Strait of Hormuz, a vital global route through which around one-fifth of the world’s oil supply passes. Any disruption in this region could significantly impact global oil supply and prices.
Following Israel’s strike on Iran’s South Pars gas field, Iran on Thursday targeted major energy facilities in Qatar and the United Arab Emirates (UAE), according to reports by Al Jazeera, after earlier warning that it would retaliate. The Israeli attack has drawn criticism from several countries, including Qatar. This escalation has further strained global energy markets and heightened overall uncertainty.
Late Wednesday, Iran targeted the Pearl gas-to-liquids facility, where the site reportedly faced heavy damage, leading to the deployment of emergency response teams. It also launched attacks on gas facilities in eastern Saudi Arabia, but according to the Saudi Ministry of Defence, all missiles and drones were successfully intercepted.
Qatar Energy said that Ras Laffan Industrial City, Qatar’s main energy hub, was hit by Iranian missiles twice within 12 hours, causing major damage. Located about 80 km north of Doha, the site is a key pillar of the country’s economy and is known as the world’s largest LNG processing facility, according to the International Energy Agency. The Qatari Ministry of Defence confirmed that the second strike took place early Thursday using ballistic missiles, after which large fires broke out, and further damage was reported. Emergency teams were deployed to manage the situation.
The facility had already suffered heavy damage in an earlier attack on Wednesday. Despite the scale of the strikes, no casualties have been reported so far. The attacks followed a warning from Iran’s Islamic Revolutionary Guard Corps, which said its opponents should be prepared for a strong response. This came after Iran blamed the United States and Israel for attacks on its own energy and fuel infrastructure.
As per CNN, US President Donald Trump threatened to blow up the world’s largest gas field, an important Iranian asset, if Iran continues its attacks on Qatar. He also said that the US had no prior knowledge of Israel’s plan to strike the South Pars Gas Field a day earlier, adding that Qatar was also unaware of the operation.
He further stated that Iran lacked complete information about the South Pars incident and, as a result, carried out what he described as an unjustified and unfair attack on part of Qatar’s LNG facility.
According to reports, Trump indicated that Israel would avoid further strikes on the gas field unless Iran targets civilians or uninvolved parties. In such a situation, he said the United States would act independently or alongside Israel and respond with overwhelming force, aiming to completely destroy the South Pars gas field on a scale Iran has never experienced before.
Asian markets moved lower following recent energy-related developments. As of 1 p.m., the Nifty 50 was down by 500 points, and the Sensex had declined by 1,668 points. Japan’s Nikkei fell by 254 points, Hong Kong’s Hang Seng dropped 500 points, and China’s Shanghai Composite was lower by 56 points.
On Wednesday, Wall Street ended lower. The Dow Jones declined by 768 points, the S&P 500 fell by 91 points, and the Nasdaq dropped 355 points, reflecting rising uncertainty.
The conflict between Israel and Iran continues to escalate, with attacks on key energy infrastructure raising supply concerns. Crude oil prices remain strong, supported by recent upward momentum and higher trading activity. Risks around the Strait of Hormuz are increasing, which could impact global oil flows.
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
Disclaimer :
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited
This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading
