Oil prices rise as investors review Middle East ceasefire prospects

Oil prices rose about 2% on Thursday, March 26, 2026, clawing back losses ‌from the previous session on concerns that protracted fighting in the Middle East will further disrupt energy flows.

Brent futures rose $2.08, or 2.03%, to $104.30 a barrel by 0638 GMT, while U.S. West Texas Intermediate crude futures were up $1.93, ​or 2.14%, at $92.25 a barrel.

Both benchmarks slumped more than 2% on Wednesday.

Iran’s foreign minister said on Wednesday the country is still reviewing a ​United States proposal to end the war, but has no intention of holding talks ⁠to end the Middle East conflict.

White House press secretary Karoline ​Leavitt said U.S. President Donald Trump will hit Iran ​harder if Tehran fails to accept that the country has been “defeated militarily”.

“Optimism regarding a ceasefire has faded,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.

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He added that the bar set by Washington appeared high, leaving oil prices vulnerable to further volatility depending on negotiations and military actions ​by both sides.

Trump’s 15-point proposal, sent through Pakistan, calls for removing Iran’s stocks of highly enriched ​uranium, halting enrichment, curbing its ballistic missile program and cutting off funding for regional allies, according to three Israeli ‌cabinet ⁠sources familiar with the plan.

The conflict has all but halted shipments through the Strait of Hormuz, which typically carries about one-fifth of the world’s crude oil and liquefied natural gas supply. The International Energy Agency has called it the biggest-ever oil supply disruption.

U.S. crude inventories rose ⁠by ​6.9 million barrels to 456.2 million barrels in the week ​ended March 20, the highest since June 2024 and far exceeding analysts’ expectations in a Reuters poll for a 477,000-barrel increase.

The Star