OIL Market Update
18 Mar 2026 • 00:28 GMT
Oil prices have surged above $103 per barrel, reaching levels not seen in over three and a half years. This rise is mainly driven by ongoing disruptions in Middle East oil supply due to the Iran conflict and shipping issues through the Strait of Hormuz. The high oil prices are also lifting the value of oil-producing currencies like the Canadian dollar and Norwegian krone, which are now at 90-day highs against the US dollar.
The sudden jump in oil prices is adding pressure on countries that rely heavily on imports, as energy costs increase. Meanwhile, the US dollar remains strong, supported by geopolitical concerns and risk-off sentiment, which usually favours the safe-haven currency. The dollar's strength is also reinforced by recent US economic data, especially manufacturing figures, while weak employment data keeps some short-term support.
In summary, oil’s continued high levels are likely to influence currency movements, strengthening oil-exporters’ currencies and maintaining USD support in the near term. Keep an eye on geopolitical developments, as persistent disruptions could push oil prices even higher, impacting global markets further.
