Kolkata: Crude oil prices breached the psychological $100 a barrel barrier with no signs of the Iran US conflict ebbing. Iran’s new leader Mojtaba Khamenei has said that the conflict will continue and the Strait of Hormuz will remain closed to vessels even as it sought reparations for the war and a guarantee of no future attacks as preconditions for cessation of hostilities. Benchmark Brent touched $101.59 a barrel.
US markets sank. On March 12, S&P 500 dropped 1.5%, while the Dow Jones Industrial Average declined 1.6% and Nasdaq composite slid 1.8%.
Goldman Sachs ups oil price forecast
Meanwhile, Goldman Sachs has forecast elevated Brent and WTI crude prices for Q4 of 2026 at $71 and $67 per barrel respectively. The earlier forecasts were $66 and $62 per barrel. This has been done in the light of continuing disruption to crude oil shipments through the Strait of Hormuz, which carries one-fifth of the global maritime energy flows. Reports said Brent prices have surged in excess of 36% since the conflict began on Feb 28. WTI prices have jumped by about 39%.
To cool prices and help supplies, the Paris-based IEA has decided to release a record 400 million barrels of oil from strategic reserves. But it would need weeks or months to reach the markets, said reports. Also this amount is sufficient to cover supply of abut 20 days.
Dollar gains
The US Dollar kept gaining. The rise happened for the second weekly gain since the first missile were fired by US-Israel forces on Feb 28, marking the beginning of the conflict. Reports said that Euro suffered a decline that pulled it down to its nearest low since Nov 2025.
The dollar index rose to its highest level since November. This index measures the US currency against a basket of six currencies. The rise of the value of the dollar has been attributed to its safe-haven appeal. Experts also pointed out that the US has become a net energy exporter and it has also helped the dollar to rise.