Gulf nations under attack
March 6, 2026
It seems like every day the headline is the same; Iran tension escalate as the war continues. This narrative is driving prices higher and has brought out all the bulls as the Strait of Hormuz drama is adding to the fire as well and is bringing buyers as they fear a disruption to supplies. This market will continue to rally if the news is supportive, and for all practical purposes the Strait of Hormuz is not open and as reported yesterday an oil tanker came under attack in the Gulf area. It is going to be very interesting to see if traders try to talk this market down and take some profits into the weekend or will prices go higher as traders cover their positions in case anything crazy happens over the weekend.
Until there is more clarity around ship movement in the Strait of Hormuz prices are supported higher.
Iran continues to attack its neighbors and shipping. It is not targeting military assets; rather, it is targeting civilians and commercial shipping. By doing so, it is putting pressure on the US to either end the war or completely stop its military capabilities. On this point, the US is fully focused on the latter.
From Bloomberg. The term “energy crisis” is being used too loosely, writes Javier Blas, While the attack on Iran is bad news for the global economy, it hasn’t produced anything like the extreme, broad, and long-lasting price shock of 2021-22. Oil and LNG prices have risen, but most energy markets remain far below past peaks.
It was a strong day for refined products as there were several bullish headlines. One was that an Indian refiner shut units due to oil shortages, and Indian refiners are reportedly tapping Russian oil on vessel off its coast. Late in the day yesterday the US issued a 30-day temporary waiver to allow for the sale of Russian oil at sea to alleviate India’s constraints.
JPMorgan reports that with the inability to move crude through waterways, producers have effectively shifted storage onto the sea and other facilities. They report that since the end of February roughly 76 million barrels of crude oil have accumulated.