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US-Israel Strikes on Iran Escalate, Oil Prices Surge 5%

NasirMehmood March 17, 2026 0 3 min read
US-Israel Strikes on Iran Escalate, Oil Prices Surge 5%

The military conflict between the United States, Israel, and Iran intensified this week, triggering a sharp rise in global oil prices and prompting urgent diplomatic maneuvers worldwide. The situation remains fluid with reports of high-profile targeted strikes, a devastating attack on a civilian school under UN investigation, and growing international concern over the security of the Strait of Hormuz.

UN Investigates Deadly Strike on Iranian School

A United Nations inquiry is underway into a fatal missile strike on the Shajareh Tayyebeh primary school in Iran, which local officials say killed 168 children, mostly girls, on the first day of hostilities. Max du Plessis, a member of the UN Fact-Finding Mission, stated the investigation is at an early stage but is based on credible reports of the death toll. U.S. military investigators have reportedly indicated likely American responsibility, though a final conclusion is pending. If confirmed, the incident would mark one of the worst civilian casualty events in recent decades of U.S. military engagement in the Middle East.

High-Profile Israeli Claims and Regional Fallout

Israeli Defense Minister Israel Katz announced that Iranian security chief Ali Larijani was killed in an Israeli strike, a claim not yet confirmed by Tehran. Earlier, Israeli media reported targeting Larijani with his fate unclear. Separately, Israel claimed to have killed Gholamreza Soleimani, commander of the IRGC’s Basij force, describing it as a “significant blow” to Iran’s command structure. Loud explosions were also reported in central Tehran, underscoring the ongoing aerial campaign.

Global Oil Markets and Hormuz Strait Crisis

The conflict has directly impacted global energy markets, with oil prices surging more than 5%. U.S. benchmark West Texas Intermediate climbed above $98 a barrel. The spike is linked to security threats around the Strait of Hormuz, a critical chokepoint for global oil shipments. U.S. President Donald Trump has called on allies to deploy warships to secure the waterway, a move met with resistance. European Union foreign policy chief Kaja Kallas emphasized the need for diplomatic solutions, warning of potential food, fertilizer, and energy crises if the strait is closed.

Iraq confirmed it is in talks with Iran to allow oil tankers safe passage through the strait and is seeking alternative export routes via Turkey to offset disruptions.

International Diplomatic and Humanitarian Response

The crisis has spurred international action. China announced it will provide emergency humanitarian assistance to Iran, Jordan, Lebanon, and Iraq to alleviate the plight of affected populations. Meanwhile, the United States has reportedly asked China to delay a summit with President Xi Jinping by at least a month due to the ongoing war. Former President Trump also made unverified claims that Iran would have used nuclear weapons on Israel, potentially sparking a wider global conflict.

As investigations continue and diplomatic efforts intensify, the region braces for further instability with profound implications for global security and the world economy.

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