LAGOS — Global oil prices jumped more than 3% Monday morning as the entry of Yemen’s Houthi rebels into the Middle East conflict sparked fresh fears of a prolonged supply disruption.
Brent crude futures surged to a peak of $116.40 per barrel in early trading, marking its steepest monthly climb since the 1990 Gulf War. U.S. West Texas Intermediate (WTI) followed suit, crossing the psychological $100 threshold to trade near $103.10.
The price spike follows weekend missile and drone strikes by Iran-aligned Houthi forces targeting strategic sites in Israel. The escalation has effectively moved the theater of war beyond the Persian Gulf and into the Red Sea, a critical artery for global energy transit.
Markets reacted sharply to the news, as investors began pricing in a “fear premium” over the potential closure of the Strait of Hormuz and the Bab el-Mandeb Strait. Together, these chokepoints handle nearly 25% of the world’s daily oil and LNG trade.
The rally comes as the U.S.-Iran conflict enters its fifth week. Analysts note that Brent has soared roughly 59% throughout March, reflecting a market that has largely discounted the possibility of a swift diplomatic resolution.
In response to the volatility, the International Energy Agency (IEA) has already signaled the release of 400 million barrels from emergency reserves. However, the move has done little to cool prices as eight OPEC+ members maintain a pause on production increases until their next scheduled meeting on April 5, 2026.
