Gulf Oil Prices Rise Amid Iran-US Tensions

Mar 8, 2026

90 min

Mar 8, 2026 22:30

Iran-US conflict: Gulf oil soar above world, US prices — UAE fuel to get costlier?

## Surge in Gulf Oil Prices

Oil prices in the Gulf region have surged, surpassing global and US prices due to heightened tensions between Iran and the US. Concerns about potential disruptions in shipping routes, particularly through the Strait of Hormuz, have driven this increase. The UAE's Murban crude, a key export, has reached some of the highest market levels.

## Impact on UAE Fuel Costs

Despite the rise in Gulf oil prices, UAE fuel prices have not yet reflected this surge. Fuel prices in the UAE are reviewed monthly, and the current rates were set before the recent increase. March 2026 prices saw a slight rise compared to February, but the full impact of the Gulf oil surge may be seen in future reviews.

## Regional and Global Implications

The price increase is largely attributed to fears of shipping disruptions through the Strait of Hormuz, a critical passage for global oil flows. This has led to a "Hormuz risk premium" being added to Gulf oil prices. The situation has prompted heavy buying from Asian refiners, particularly in Japan and South Korea, which depend on Middle Eastern oil.

## Comparison with US Oil Prices

The price gap between Gulf oil and US oil has widened, with Gulf grades exceeding $100 per barrel, while West Texas Intermediate (WTI) remains around $76-$79 per barrel. This disparity indicates that the surge is driven by regional supply concerns rather than a global oil shortage.

## Future Outlook

If Gulf oil prices remain high, the next monthly fuel review in the UAE could reflect these increased costs. However, retail fuel prices tend to adjust more slowly due to the monthly pricing cycle. The UAE Fuel Price Committee sets these prices, and they may change if global oil markets fluctuate before the official announcement.

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