Brent Surges to $100 as Iraq Halts Terminal Operations Following Tanker Attacks

Mumbai | March 12, 2026

The Indian financial markets faced a turbulent start on March 12, 2026, as Brent crude prices surged past the $100 per barrel threshold. This dramatic price action was triggered by Iraq’s emergency decision to shut down its primary oil export terminals in the Basra region. The suspension follows a series of attacks on oil tankers, which have heightened geopolitical risks and threatened to remove millions of barrels of daily supply from the global market.

Market Overview

The Indian Rupee (INR) hit a new record low against the US Dollar (USD), plunging to levels around 92.35–92.52. While the broader market indices struggled, the energy sector showed a polarized performance, reflecting the complex impact of rising crude costs on the domestic economy. Today, the BSE Sensex tumbled 992.53 points to 75,871.18, while the Nifty 50 dropped 310.55 points to 23,556.30.

India imports nearly 90% of its crude requirements and about ‌50% of its gas requirements. More than half of it’s from the Middle East, where flows have come to a standstill cause of the U.S.-Israeli war on Iran. India’s current oil stocks are enough to cover the next 20 to 25 days.

Drivers and Context

The primary catalyst for the price surge is the operational halt at Iraq’s southern terminals, which handle the bulk of the country’s crude exports. Reports indicate that multiple tankers were targeted in the Persian Gulf, prompting Iraqi authorities to prioritize security and assess potential damage to infrastructure. As Iraq is a major supplier to Asian markets, including India, the disruption has caused an immediate scramble for alternative supplies. This event comes at a time when global inventories are already lean, further driving up spot prices and exacerbating global supply tightness.

 Broader Market and Outlook

Beyond the immediate price shock, the surge to $100 oil presents a significant challenge for India’s macroeconomic stability. Sustained high energy prices could lead to higher imported inflation, potentially influencing the Reserve Bank of India’s future monetary policy trajectory. Market participants are now closely monitoring diplomatic responses and the duration of the terminal shutdowns to gauge the long-term impact on fiscal deficits. The outlook for the coming sessions remains cautious, with volatility expected to persist as the situation in the Middle East evolves and global supply chains adjust to the loss of Iraqi crude.

More updates on India’s economy and markets will follow on PL Capital.