Oil Markets Surge as Middle East Tensions Escalate Over Iran Energy Control Claims
Story: written by Zara March 30,2026
Global oil prices extended their upward rally as tensions in the Middle East intensify, with U.S. President Donald Trump suggesting he could seize control of Iran’s oil resources, including the strategic export hub at Kharg Island.
In an interview with the Financial Times, Trump stated that taking control of Iran’s oil would be his preferred approach, drawing comparisons to earlier U.S. actions in Venezuela, where the U.S. gained significant influence over oil operations following the detention of Nicolás Maduro.
Reports from Reuters indicate that the U.S. has considered deploying ground forces to Kharg Island, though officials warn such a move would be highly risky due to Iran’s missile and drone capabilities.
Trump emphasized that multiple options remain on the table, noting that any attempt to take control of the island would require a sustained military presence.
His remarks come as the conflict involving the U.S., Israel, and Iran continues to expand, raising fears over energy supply disruptions and pushing crude oil prices higher.
Brent crude futures climbed past $116 per barrel, while U.S. West Texas Intermediate also recorded gains as investors reacted to growing instability across the region.
Military sources cited by the Washington Post revealed that preparations are underway for a possible prolonged conflict, with thousands of troops deployed to the region, signaling a deepening crisis.
Trump also claimed that indirect negotiations with Iran, reportedly facilitated through intermediaries, were progressing positively, although Tehran has denied direct talks. Meanwhile, Iran has rejected a U.S. peace proposal demanding strict limits on its nuclear and missile programs.
The situation has already begun to impact critical infrastructure. In Kuwait, a power and water desalination facility was damaged in an attack, leading to the death of a worker and raising concerns about regional stability.
Experts warn that any escalation could further disrupt essential services, especially as desalination plants provide the majority of drinking water across Gulf nations.
Additionally, Iran-aligned Houthi forces in Yemen have entered the conflict by launching missile strikes toward Israel, further widening the scope of hostilities and heightening fears of a prolonged regional war.
