Global energy markets are in turmoil after US and Israeli forces targeted Iran's South Pars gas field on March 18, 2026. Brent crude prices spiked by 3.83%, surpassing $107 per barrel and reaching a peak of $110 as Tehran threatened immediate retaliation. In a strategic move to curb domestic price hikes, US President Donald Trump has issued a 60-day waiver of the Jones Act to facilitate emergency maritime energy transport.
US and Israeli forces struck Iranian energy infrastructure, including the South Pars gas field, sending Brent crude oil prices surging to $110 per barrel, according to Adnkronos. The attacks, carried out as part of the ongoing Operation Epic Fury, targeted facilities critical to Iran's energy export capacity. Oil markets reacted sharply, with prices climbing 3.83% to exceed $107 per barrel in earlier trading, according to eldiario.es, before Brent pushed higher still. The strikes on South Pars, the world's largest natural gas field shared between Iran and Qatar, represented a direct blow to Iranian energy infrastructure. Iran issued threats of retaliation following the strikes, further unsettling commodity markets globally.
Trump waives Jones Act to ease supply pressure Donald Trump, the 47th president of the United States, lifted the Jones Act for 60 days with the stated aim of stabilizing the oil market, according to iefimerida.gr. The waiver allows foreign-flagged vessels to transport cargo between US ports, a measure typically reserved for supply emergencies. The decision signals the administration's concern that domestic energy logistics could face strain as global oil supplies tighten. Trump's move came as energy analysts and markets assessed the potential long-term disruption to Iranian output following the strikes. The 60-day window gives the administration time to assess whether further emergency measures will be needed to prevent domestic fuel price spikes.
The South Pars/North Dome field, located in the Persian Gulf, is the world's largest natural gas field, with ownership shared between Iran and Qatar, according to the International Energy Agency. The field holds an estimated 1,800 trillion cubic feet of natural gas and has long been central to Iran's energy export revenues. US-Israeli military operations against Iran began on February 28, 2026, under the designation Operation Epic Fury, following which Ali Khamenei was killed in initial strikes. Mojtaba Khamenei, his son, was appointed Supreme Leader of Iran on March 9, 2026. Strikes on South Pars mark a significant escalation in targeting Iran's economic infrastructure.
Federal Reserve flags inflation risk from Iran war The US Federal Reserve raised its inflation outlook, citing the uncertain impact of the war with Iran on the US economy, according to Le Monde. The central bank's revised projections reflect concern that sustained high oil prices will feed through to consumer prices across a broad range of goods and services. Energy costs represent a significant input for transportation, manufacturing, and agriculture, amplifying the inflationary effect of any prolonged supply disruption. The Fed's updated stance complicates the path for potential interest rate cuts that markets had been anticipating earlier in the year. Policymakers now face the challenge of balancing slowing growth risks against renewed price pressures driven by geopolitical factors outside their control.
110 (USD per barrel) — Brent crude price following South Pars strikes
2026-03-17: 103, 2026-03-18: 107, 2026-03-19: 110
Brazil cuts rates cautiously despite the oil shock Brazil's central bank, the Banco Central do Brasil, began an easing cycle with a cautious 25-basis-point interest rate cut, according to Reuters, even as the global oil shock complicated the decision. The bank's move was described as cautious, reflecting the difficult balance between supporting a slowing domestic economy and managing imported inflation from surging energy prices. Brazil, as a major oil producer and emerging market economy, faces a dual pressure: higher global oil prices can boost export revenues but simultaneously raise domestic fuel and transport costs. The 25-basis-point cut was smaller than some market participants had anticipated, underscoring the bank's reluctance to ease aggressively in an uncertain global environment. The decision illustrates how the US-Israeli military campaign against Iran is reshaping monetary policy decisions far beyond the Middle East, rippling through emerging market economies that are sensitive to commodity price swings.
Brazil central bank policy shift: Rate cut size (before: No easing cycle, after: 25-basis-point cut initiated); Policy stance (before: Holding rates amid inflation concerns, after: Cautious easing despite oil shock)