Brent surges over 50% in March amid Strait of Hormuz disruptions, fueling fears of a prolonged global energy shock……
Global crude oil prices closed the trading week of March 20, 2026, on a strong upward note, climbing 8.22% to settle at $112 per barrel, as escalating geopolitical tensions continue to rattle energy markets.
Tracked by Brent Crude Futures, oil prices have surged more than 53% this month alone, driven largely by the ongoing conflict involving the United States and Iran. The situation has raised serious concerns about global oil supply, pushing traders into a risk-driven buying spree.
At the heart of the crisis is the Strait of Hormuz, a narrow but critical shipping corridor between Iran and Oman. The waterway, responsible for transporting a significant share of the world’s oil, has witnessed major disruptions as tensions escalate, particularly following Iran’s retaliatory actions against the United States and Israel.
So far in 2026, crude prices have climbed more than 83%, inching closer to the $118 levels last recorded in mid-2022. The rally gained momentum after oil broke past the $93 resistance level earlier in March, a threshold not seen since September 2023 signaling intensifying supply fears across global markets.
Much of this upward pressure can be traced to military developments, including the U.S. operation known as Operation Epic Fury, launched against Iran in late February. The move significantly heightened market anxiety, accelerating the price surge.
The ripple effects are already spreading across the broader energy complex. Refined products have seen even sharper increases, with heating oil prices jumping over 77% this month to exceed $4.6 per gallon, up from roughly $2.8. Meanwhile, kerosene futures on the Tokyo Commodity Exchange have climbed more than 60%, reaching around ¥140,000 per kilolitre.
Back home, Nigeria is beginning to feel the impact. Despite improvements in domestic refining capacity, fuel prices remain closely tied to global trends. The Dangote Petroleum Refinery has already adjusted its petrol pricing upward, raising the ex-depot price from ₦1,245 to ₦1,275 per litre within days.
The refinery is also attracting increased attention from across Africa, with countries such as South Africa exploring alternative supply options as traditional routes face disruption.
In response to the escalating crisis, the International Energy Agency has urged countries to consider demand-reducing measures, including cutting back on air travel, to ease pressure on fuel consumption.
Looking ahead, market outlooks remain highly uncertain. Analysts warn that if tensions persist or worsen particularly if the Strait of Hormuz becomes fully inaccessible oil prices could climb even higher.
Officials in Saudi Arabia have already cautioned that a prolonged disruption could push crude prices toward $180 per barrel, underscoring the scale of the potential energy shock.
With global supply chains under strain and geopolitical risks mounting, the oil market appears set for continued volatility leaving economies like Nigeria exposed to the full force of rising energy costs.
About the Author
