Oil prices eclipsed $114 per barrel for the first time since 2022 on Monday (March 9, 2026) as the Iran war intensified, threatening production and shipping in West Asia.


The price for a barrel of Brent crude, the international standard, surged past $114 after trading resumed on the Chicago Mercantile Exchange. That was up 23% from its Friday (March 6) closing price of $92.69.

West Texas Intermediate, the light, sweet crude oil produced in the United States, also was selling for about $114 a barrel. That’s 25% higher than its close on Friday (March 6) at $90.90.

The war’s toll on civilian targets grew early on Monday (March 9) as Bahrain accused Iran of striking a desalination plant vital to drinking water supplies, and oil depots in Tehran smoldered following overnight Israeli strikes.

The increases followed the U.S. crude price jumping by 36% and Brent crude rising by 28% last week. Oil prices have surged as the war, now in its second week, ensnared countries and places that are critical to the production and movement of oil and gas from the Persian Gulf.

Roughly 15 million barrels of crude oil — about 20% of the world's oil — typically are shipped every day through the Strait of Hormuz, according to independent research firm Rystad Energy. The threat of Iranian missile and drone attacks has all but stopped tankers from travelling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.

Iraq, Kuwait, and the UAE have cut their oil production as storage tanks fill due to the reduced ability to export crude. Iran, Israel, and the United States also have attacked oil and gas facilities since the war started, exacerbating supply concerns.

The last time U.S. crude futures traded above $100 per barrel was June 30, 2022, when the price reached $105.76. For Brent, it was July 29, 2022, when the price hit $104 per barrel.

The global surge in oil prices since Israel and the U.S. attacked Iran on March 1 has rattled financial markets, sparking worries that higher energy costs will fuel inflation and lead to less spending by U.S. consumers, the main engine of the economy.

In the U.S., a gallon of regular gasoline rose to $3.45 on Sunday (March 8), about 47 cents more than a week earlier, according to AAA motor club. Diesel was selling for about $4.6 a gallon, a weekly increase of about 83 cents.

“The amendment provides for a definition and criteria for determination of Beneficial Ownership that is widely used by investing community, under the Prevention of Money Laundering Rules, 2005,” the statement said.

Under the revised rules, investments where the beneficial ownership from a land-bordering country is non-controlling and does not exceed 10 percent will be permitted through the automatic route, subject to sectoral caps and other conditions. The government said such investments will require disclosure by the investee company to the Department for Promotion of Industry and Internal Trade (DPIIT).

“The Beneficial Ownership test shall be applied at the level of the investor entity,” the statement said.

Faster approvals for select manufacturing sectors

The Cabinet has also approved an expedited approval mechanism for investment proposals from land-bordering countries in specified manufacturing sectors.

The government said a 60-day decision timeline for approvals will help companies enter joint ventures to access technologies and integrate with global supply chains. The timeline is expected to help companies move faster on technology partnerships and manufacturing expansion.

“Expeditious decision in 60 days to help companies enter into collaborations to expand manufacturing in India,” the statement said.

However, the revised framework maintains safeguards to ensure domestic control in sensitive sectors. In cases eligible for fast-tracked approval, the majority shareholding and control of the investee entity must remain with resident Indian citizens or entities owned and controlled by them at all times.

PN3 introduced during pandemic

Press Note 3 was introduced in April 2020 during the COVID-19 pandemic to prevent opportunistic acquisitions of Indian companies when asset valuations were under pressure.

The rule mandated that any investment from countries sharing a land border with India — including China — must receive government approval. It also required approval if the beneficial owner of an investment was located in such a country.

The government said the earlier framework was affecting investment inflows in cases where investors from land-bordering countries held only minority or non-strategic stakes, including through global private equity and venture capital funds.

“Applicability of PN3 restrictions to cases where Land Bordering Countries' investors may have only non-strategic, non-controlling interests was seen as adversely affecting investment flows from investors including global funds such as PE/VC funds,” the statement said.

Expected impact on manufacturing

The government expects the revised policy to support investment in emerging manufacturing sectors such as electronic components, capital goods and solar manufacturing.

“Cabinet approved changes in FDI policy for investments from Land Bordering Countries will help manufacturing in electronic components, capital goods and solar cells,” the statement said.

It added that the new framework would help improve India’s competitiveness as a manufacturing destination.

“It is expected that the new guidelines will provide clarity and ease of doing business in India, and facilitate investments which can contribute towards greater FDI inflows, access to new technologies, domestic value addition, expansion of domestic firms and integration with global supply chain,” the government said.

The government said stronger FDI inflows could supplement domestic capital, support the objectives of the Atmanirbhar Bharat initiative and accelerate economic growth.