With no signs of the Iran-U.S. war stopping, key oil prices have surged since the war began. U.S. The increase was evident across the board, with U.S. oil crude futures, West Texas Intermediate prices and Brent crude oil prices all climbing.

As of March 9, the price per barrel of Brent crude, the international standard, touched $114, which is 23% higher than its closing price of $92.69 on Friday (March 6, 2026).

West Asia’s significance for oil

The Iran-U.S. war has extended into Saudi Arabia, Qatar, UAE, Bahrain, Lebanon and Kuwait. Initially Iran focused on strikes against U.S. bases in the region and Israel, but retaliatory strikes from the U.S. and other countries have included civilian spaces like a primary school in Iran, diplomatic areas like Embassies, a data centre and now oil infrastructure in Tehran.

The region plays a significant role in global oil production and price dynamics.

Following the war, several state oil companies in the Gulf countries have cut down on production, or declared a pause in oil contracts.

Strait of Hormuz

Besides production dominance, the region includes a crucial trade chokepoint for oil transit – the Strait of Hormuz. Around 20% of total oil consumed passes through this chokepoint.

However, the volatile situation in the region, along with possibility of the waters being mined, has led to a drop in traffic through the Strait. Iran attacked at least five ships passing through the area, and declared the area closed on March 2.

Alternatives like the East-West pipeline in Saudi Arabia and the Habshan-Fujairah pipeline in UAE exist, but export capacities are limited. The Yanbu port on the Persian Gulf, however, does not have current capacity to handle the amount of oil sent through the East-West pipeline. As per ship tracker Kpler, Saudi Arabia exported about 6.38 million barrels per day in February through the Strait of the roughly 7.2 million barrels per day exported that month. The Fujairah port in the UAE, handling oil transported through the Fujairah pipeline, came under attack earlier.

India’s oil situation

India had storage of 100 million barrels of crude oil in different places, which could act as a buffer for around 40 to 45 days in the absence of oil transiting through the Strait, Kpler said as per a PTI report. For India, most of its crude oil is imported. Since 2016-2017, over 80% of crude oil is imported, as per the Petroleum Planning and Analysis Cell. Additionally, at least 54% of imports come from West Asian countries.

India’s Russian oil imports have been a key point of disagreement between the U.S. and India in trade negotiations post U.S. President Trump’s tariff measures. Besides Russia, India’s alternatives could come from West Africa, Latin America and the U.S., PTI reported.

(With inputs from agencies)