Trump Threatens Iran’s Oil, Power & Water Infrastructure — US-Iran War Sends Oil Above $115 a Barrel
Published: 31 March 2026 | layblog.com | World & Business News
The US-Israeli war against Iran has entered its 31st day with no signs of a ceasefire, as global oil markets spiral into historic volatility. Oil was around $115 a barrel on Tuesday morning, up nearly 60% from the start of the war a month ago and the highest since the conflict started. Careers360 Here is everything you need to know about the latest developments.
Key Highlights — 31 March 2026
| Update | Details |
|---|---|
| Oil Price (Brent) | $115+ per barrel |
| Oil Price (WTI) | $103 per barrel |
| War Duration | Day 31 |
| Strait of Hormuz | Partially blocked |
| Latest Attack | Kuwaiti tanker hit by Iranian drone |
| US Proposal | 15-point peace plan sent via Pakistan |
Trump Threatens Iran’s Oil Wells, Power Plants and Water Supply
US President Donald Trump warned that the US would “completely” obliterate Iran’s electric generating plants, oil wells and Kharg Island if a deal is not reached to immediately reopen the Strait of Hormuz. Trump told the Financial Times that he could “take the oil in Iran” and seize the export hub of Kharg Island. Shiksha
Iran’s closure of the strait through threats and attacks on shipping has stranded roughly 15 million barrels of crude per day in the Persian Gulf, causing severe volatility in global oil markets. shiksha
However, Trump appeared to walk back some of his threats later on Tuesday. Speaking from the Oval Office, Trump said he had pulled back from his earlier threat to launch strikes on Iranian energy infrastructure “based on the fact we’re negotiating.” “They’re talking to us, and they’re talking sense,” Trump said. The Free Press Journal
Kuwaiti Oil Tanker Attacked by Iranian Drone
A fully loaded Kuwaiti tanker in Dubai waters was hit by an Iranian drone attack, triggering fears of an oil spill, as Trump again threatened to blow up Iran’s energy facilities if the Hormuz Strait isn’t fully reopened. Business Standard
Kuwait Petroleum Corp. said one of its supertankers, named Al-Salmi, was struck by an Iranian munition while it was anchored in the port of Dubai. It was fully laden with oil at the time. No injuries were reported among crew members and no environmental impact has been reported. Careers360
Oil Markets in Crisis — What the Numbers Say
West Texas Intermediate pulled back near $103 a barrel after jumping almost 4% following the Iranian attack on a vessel in the Persian Gulf, with the US marker swinging in a band of about $6 earlier in the session. Shiksha
Brent crude futures prices rose 36% from Feb. 27 — the last day of trading before the war started — through late March, when they traded above $113 a barrel. But the Dubai price, which tracks physical delivery from certain Middle East sellers, is up 76%, more than twice the paper price, at $126. Careers360
Goldman Sachs said the current disruption to oil supplies marks the largest shock in decades when measured as a share of global supply. The bank noted that near-term price movements are being driven less by changes in the base case outlook and more by shifts in the perceived probability of worst-case scenarios. The Free Press Journal
US Peace Proposal Sent to Iran via Pakistan
The New York Times reported, citing two unnamed officials, that the US had sent Iran a 15-point proposal aimed at ending the war. According to the report, the proposal was delivered through Pakistan. It remains unclear how widely the proposal has been circulated among Iranian officials, and it is also uncertain whether Israel, which is carrying out attacks on Iran alongside the US, would back the plan. The Free Press Journal
Iran denied direct talks are happening. A spokesperson for Iran’s foreign minister said that over the last 31 days of the war, they have had “no negotiations with America.” He added: “What has occurred is the submission of a negotiation request, accompanied by a set of proposals from America, which has reached us through certain intermediaries, including Pakistan.” Testbook
Strait of Hormuz — Why It Matters to the World
The Strait of Hormuz is one of the world’s most critical energy chokepoints. Around one-fifth of global crude oil and gas passes through the waterway, and governments around the world are scrambling to implement measures to ease the burden of surging fuel prices while also seeking to conserve energy. Shiksha
The US and others are releasing 400 million barrels of oil from strategic reserves — the biggest release on record — and the US has temporarily lifted sanctions on some Russian and Iranian oil to give the market breathing room. Careers360
Oil executives and analysts warn that the Strait of Hormuz needs to be reopened by mid-April or oil-supply disruptions will get significantly worse. Careers360
Trump Claims “Regime Change” in Iran
President Trump reiterated his stance that the US has already achieved regime change in Iran and a deal to end the war could be reached “soon.” Citing the number of Iranian leaders who have been killed in the month-long US-Israeli war against Iran, Mr. Trump said the people now running Iran were “much more reasonable.” Testbook
Iran rejected this characterisation. Iran’s foreign ministry spokesperson said: “Our stance is quite clear. At present, as America’s military aggression and assault continue with full force, all our efforts and resources are devoted to defending Iran’s very existence.” Testbook
Israel Expands Ground Operations in Lebanon
Israeli Prime Minister Benjamin Netanyahu said Israel’s military will widen its ground campaign in southern Lebanon. Speaking at a news conference, Netanyahu said an expansion of the country’s “security belt” in Lebanon is intended to “thwart the threat of invasion and to keep the anti-tank missile fire away from our border.” Careers360
How This Affects India and Common People
The Iran-US war is directly impacting India in several major ways:
Petrol & Diesel Prices — With Brent crude above $115 a barrel, fuel prices globally are under severe pressure. India imports over 80% of its oil needs and Iran was historically a key supplier.
Shipping Costs — With the Strait of Hormuz disrupted, cargo ships are being rerouted around Africa, adding weeks and thousands of dollars in shipping costs, which pushes up the price of imported goods.
Remittances — Millions of Indian workers in the Gulf region, particularly in UAE, Kuwait and Saudi Arabia, are impacted by the ongoing conflict in the region.
What Happens Next? Key Things to Watch
- Will Iran accept the US 15-point peace proposal delivered via Pakistan?
- Will Trump follow through on his threat to destroy Iran’s energy infrastructure?
- Will the Strait of Hormuz reopen before mid-April as Goldman Sachs expects?
- How long can global strategic oil reserves provide a buffer?
Frequently Asked Questions (FAQs)
Q1. Why is oil above $100 a barrel right now? The US-Israeli war against Iran has blocked the Strait of Hormuz, stranding roughly 15 million barrels of crude per day in the Persian Gulf and causing a massive supply shock.
Q2. What is the Strait of Hormuz? It is a narrow waterway between Iran and Oman through which about one-fifth of the world’s oil passes. Iran has been blocking and attacking shipping there since the war began.
Q3. What is Operation Epic Fury? It is the name of the US-Israeli military operation launched against Iran that began on 28 February 2026.
Q4. Has Iran agreed to any peace deal? No. Iran has denied direct talks with the US, though it has acknowledged receiving a 15-point proposal via Pakistan intermediaries.
Q5. Will oil prices come down soon? Goldman Sachs expects oil flows through Hormuz to normalise in April if a deal is reached. Until then, prices are expected to remain highly volatile.
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