By Shree Mishra | March 27, 2026
Oil prices edged lower on Friday, heading toward a weekly decline after U.S. President Donald Trump extended a temporary pause on attacks targeting Iran’s energy infrastructure by an additional ten days. The move offered short-term relief to markets, though uncertainty surrounding the broader conflict continues to weigh on sentiment.
As of 06:08 GMT, Brent crude futures slipped marginally by $0.04 to $107.97 per barrel, while U.S. West Texas Intermediate (WTI) fell $0.40 to $94.08 per barrel.
Despite the pause, investors remain cautious. A quick resolution to the conflict appears unlikely, and volatility has defined the market since late February, when U.S. and Israeli strikes on Iran triggered a sharp rally. WTI prices have surged roughly 40% since the escalation began but are down 4.6% this week. Brent, which climbed more than 48% during the same period, has fallen about 4% on the week.
At the core of the disruption is a significant supply shock. The ongoing conflict has removed an estimated 11 million barrels per day (mbbl/d) from global oil markets. The International Energy Agency has warned that the severity of the current crisis exceeds both the oil shocks of the 1970s and the Russia-Ukraine gas conflict.
Diplomatic efforts have so far failed to ease tensions. Iran recently rejected a U.S. proposal delivered via Pakistan, calling it “one-sided and unfair,” according to Reuters. Meanwhile, the U.S. is increasing its military presence in the Middle East, with reports that President Trump is considering deploying ground forces to secure Iran’s key oil export hub on Kharg Island.
Adding further pressure to global energy markets are supply disruptions outside the Middle East. In Western Australia, Tropical Cyclone Narelle has impacted major LNG operations. Chevron is working to restore output at its Gorgon and Wheatstone facilities, while Woodside has reported reduced production at its Karratha gas plant. Output at Karratha has dropped from 16.9 million tonnes per annum (mtpa) to 14.3 mtpa after one production train was shut down.
Woodside also signaled weaker production guidance for 2026 due to downtime at its Pluto LNG facility, following a record production year in 2025.
With geopolitical risks persisting and additional supply disruptions emerging globally, energy markets remain on edge—balancing temporary relief measures against the potential for further escalation.
Author: phinds
