Reports indicate that President Donald Trump is weighing the deployment of U.S. Marines to Iran’s Kharg Island, a critical oil export hub. This news has sent shockwaves through the global oil market, causing prices to surge.
As of 3:10 p.m. local time on March 20, West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange jumped 2.78% to 98.81 USD per barrel.
Brent crude futures also saw a significant spike, climbing 3.86% to 112.75 USD per barrel.
According to Axios, a prominent U.S. political news outlet, the Trump administration is considering a bold move to seize Kharg Island with Marine forces, potentially giving the U.S. control over the strategic Strait of Hormuz.
This development signals a possible long-term engagement between the U.S. and Iran.
Adding fuel to the fire, Reuters reported that Iraq has declared force majeure on all foreign-operated oil fields, further contributing to the oil price surge.
Force majeure, a legal provision, allows parties to be relieved of contractual obligations due to extraordinary circumstances beyond their control.
In a related development, Qatar, which recently suffered Iranian attacks on its largest gas field, announced it may invoke force majeure on long-term supply contracts with key nations, including South Korea. The attacks have reportedly damaged 17% of Qatar’s production capacity.
As the U.S.-Iran conflict threatens to escalate into a war targeting critical energy infrastructure, global oil prices are responding with across-the-board increases, reflecting growing market anxiety.