Israel–Iran tensions dash hopes for quick peace as oil prices surge

Oil prices rose on March 23 after fresh fighting overnight between Israel and Iran diminished hopes that an end to the Middle East war, now in its fourth week, might be imminent.

Brent crude, the global oil benchmark, climbed 1.6% to $101.5 a barrel. WTI, the US benchmark, rose 2.7% to $90.5 a barrel, CNN reports.

Brent had reached more than $114 a barrel at one point on March 23 before plunging to settle at $99.94, after Trump hailed “very good and productive conversations” with Iran about ending the war.

Iran has denied any dialogue with Washington, however, though sources have told CNN that mediation efforts are underway, including by Türkiye and Egypt.

Stock markets were mixed on March 24, as traders weighed hopes for a prompt end to the war against evidence of attacks overnight. Asian markets pared some of Monday’s losses to close higher in Seoul, Tokyo and Hong Kong.

In Europe, major indexes in London, Frankfurt and Paris were broadly flat in morning trade, following gains on March 24. US futures were also flat. “The peak optimism from yesterday didn’t last long and has not really followed through today,” Neil Wilson, a strategist at investment platform Saxo, said in a note.