World News

The Brent crude oil price is on track for its biggest monthly gain on record in March after the Iran war caused mayhem in the markets.

Brent crude, the international benchmark, has climbed by 51% since the start of March, LSEG data shows, beating the previous monthly record of 46% in September 1990 after Saddam Hussein invaded Kuwait, leading to the first Gulf war.

Brent closed at $112.57 a barrel on Friday, up from $72.48 a barrel on 27 February, the day before the US-Israeli war on Iran began. Brent traded as high as $119.50 a barrel during March, its highest level since June 2022, after Iran all but closed the strait of Hormuz, through which a fifth of global oil and gas would normally pass.

US crude prices also rose during March; West Texas Intermediate has gained 48%, on track for its strongest month since May 2020, when the Covid-19 pandemic was disrupting the world economy.

Oil prices climbed through the month despite the coordinated release of 400m barrels of oil from emergency reserves announced on 11 March. Analysts at BloombergNEF estimate that 9m barrels of oil per day have been knocked off global oil supply by the Middle East conflict.

Donald Trump appeared to lose his ability to talk down the oil price as the war continued. Earlier in the month, the president’s claims of progress in negotiations pushed down crude prices, but by late March his declaration of a 10-day extension for Iran to reopen the strait of Hormuz was followed by a rising oil price and falling stock markets.