By Adam Clark
Oil prices were rising again early Friday despite an announced pause in U.S. strikes on Iranian infrastructure, as investors price in the likelihood of an extended conflict in the Middle East.
Brent crude, the international standard, was up 2.4% at $104.19 a barrel. West Texas Intermediate, the U.S. standard, was rising 2.5% to $96.82 a barrel.
After the markets closed on Thursday, President Donald Trump posted on social media that he was delaying strikes on Iranian energy facilities for another 10 days.
"As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time," Trump posted on Truth Social, adding that "talks are ongoing."
While the statement led to an initial dip in oil prices, crude prices subsequently resumed their rise in the early hours of Friday. The Pentagon is considering sending up to 10,000 additional ground troops to the Middle East, The Wall Street Journal reported overnight, citing officials.
Such a force would likely be stationed within striking distance of Kharg Island, Iran's main crude export terminal and a potential target for seizure to force the Iranian regime into peace negotiations, the WSJ reported.
Energy markets appear unconvinced that Trump's combination of a diplomatic push and threats of sending American troops on the ground will lead to a quick peace. Iran has yet to deliver a final response to a 15-point plan to end the war, according to mediators.
Macquarie strategists warned that if the war continues until the end of June -- a scenario they give a roughly 40% chance -- then oil prices could hit $200 a barrel.
"Given uncertainty about what victory looks like, and recent attacks on energy infrastructure, there is a risk that [oil] prices may need to move significantly higher first to incentivize a near-term deal," wrote Macquarie strategist Peter Taylor in a research note.
The Strait of Hormuz, the key waterway where around 20% of the world's daily oil traffic normally flows, remains largely closed and global disruption is mounting.
Some tankers have passed through the strait. Malaysia's prime minister said Iran has granted some of its oil vessels passage via the strait in a speech late Thursday. However, two container vessels belonging to China's state-owned shipping company Cosco Shipping were turned back from crossing on Friday morning, according to ship tracker MarineTraffic.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 27, 2026 07:37 ET (11:37 GMT)
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