OIL Market Update
25 Mar 2026 • 00:43 GMT
Oil prices have surged to 7-day lows near $96.36 per barrel, remaining well above their 3-month average of $74.61. The recent rise, driven by ongoing Middle East tensions and disruptions in oil shipping routes, particularly through the Strait of Hormuz, has pushed prices above $100 per barrel, reaching levels not seen in over three years. These higher oil prices have strengthened currencies of major oil-exporting countries like Canada, Russia, and Norway.
If the conflict persists and supply issues continue, oil could rise further, potentially up to $120 per barrel, which would likely put additional upward pressure on currencies linked to oil exports. Meanwhile, the US dollar has shown signs of recovery after recent dips, supported by a cautious market outlook and mixed signals from the Federal Reserve. However, ongoing geopolitical tensions and oil market volatility keep the outlook uncertain.
For retail FX traders, this blend of rising oil prices and a cautiously rebounding USD highlights the importance of monitoring geopolitical developments, as they can quickly influence currency movements, especially for those currencies connected to oil markets.
