Hormuz & Global Energy — 2026-04-03

Oil Prices Surge to $109 Brent/$111 WTI as War Disrupts 12 Million Barrels Daily

Brent crude surged 7.8% to $109/bbl and WTI rose 11.4% to $111/bbl on April 3 as the Iran war continues to disrupt an estimated 12 million barrels per day of production and transit. The IEA has characterized this as the largest supply disruption in the history of the global oil market. Stanford estimates average American households will pay $857 more for gasoline over the remainder of the year if Hormuz transit remains restricted. Strategic petroleum reserve releases are being considered.

Analysis
The IEA's warning that April will be worse than March reflects the lag effect: March still benefited from vessels already in transit when the blockade began. With 12 million bpd lost, more than any two prior oil crises combined, and the ECB warning of stagflation in Germany and Italy, the energy shock is now the primary vector through which the war affects non-belligerent economies. The $20 billion US reinsurance program signals Washington recognizes the problem cannot be solved by military means alone.

2 sources

Current price of oil as of April 3, 2026 - Fortune
Oil Prices Surge While Asian Share Prices Rise Moderately - US News