Oil prices remained elevated on Thursday, March 12, 2026, as tensions surrounding the Strait of Hormuz continued to escalate. Iran’s military leadership has designated all vessels and oil shipments bound for the United States, Israel, and their allies as legitimate targets in the strategically vital waterway, a key passage for global trade.
Despite the ongoing disruption, the International Energy Agency (IEA) announced plans to release a record volume of strategic oil reserves in response to the situation, aiming to counteract rising prices. Yet, the blockade continues to put upward pressure on energy costs, fueling concerns that persistent high oil prices could exacerbate inflation and hinder economic growth. Experts suggest that stocks are currently facing elevated risk as a result.
Energy stocks saw gains amid the higher oil prices, with Chevron and Exxon Mobil both rising as much as three percent. These gains reflect the immediate impact of the supply concerns on major oil producers.
Elsewhere in the market, Oracle shares climbed 9.2 percent, nearing the top of the S&P 500. JPMorgan analyst Mark Murphy upgraded the stock, stating that the company had “delivered” with its accelerated growth. He cited an improved risk-reward ratio following recent price declines as a key factor in his decision.
Unifirst shareholders also reacted positively to news of a takeover bid from Cintas, the uniform supplier. Cintas is offering $310 per share in cash and stock, sending Unifirst’s stock price up 6.6 percent to nearly $275. Cintas quickly recovered from initial losses, rising 1.1 percent.
February inflation data released on Wednesday, March 11, 2026, took a backseat to the geopolitical concerns. The U.S. Inflation rate remained at 2.4 percent, in line with analyst expectations. Energy costs continued to have a moderating effect on overall price increases, though the full impact of the Iran situation and rising oil prices is expected to be felt in the coming months.
According to VP Bank’s chief economist Thomas Gitzel, the February data is now less significant given the surge in oil prices linked to the conflict. He anticipates that the inflation rate will likely increase again in March due to rising gasoline prices. The situation underscores the sensitivity of inflation data to global energy market dynamics.
The ongoing situation in the Strait of Hormuz, as reported by the Associated Press, remains the key factor in determining the direction of energy prices and the broader economic outlook. The IEA’s planned release of reserves, detailed in reporting from NZZ, is intended to mitigate the impact of potential supply disruptions, but its effectiveness remains to be seen. Despite the reserve release, the Tagesanzeiger notes that oil prices continue to climb.
