LAGOS — Global oil prices skyrocketed on Wednesday as a near-total blockade of the Strait of Hormuz and a massive production slump from OPEC+ nations sent shockwaves through energy markets.
Brent crude spiked to $118.20 per barrel in early trading on April 1, 2026, while West Texas Intermediate (WTI) climbed to $102.50. The surge follows a reported collapse in OPEC production, which plummeted by 7.3 million barrels per day in March due to extensive infrastructure damage and power failures across the Gulf region.
The market remains highly volatile as the International Energy Agency (IEA) attempts to stabilize supply by releasing 400 million barrels from emergency reserves. However, the halt of 20 million barrels per day of exports through the Hormuz chokepoint has created a deficit that emergency stocks have yet to offset.
Egyptian President Abdel Fattah al-Sisi warned on Monday that if diplomatic efforts fail to reopen seaborne routes, crude oil could near $200 per barrel by the end of the second quarter. Conversely, a breakthrough in negotiations could see prices rapidly retreat toward the $80 level. For now, conflicting signals from Washington and continued regional instability keep the geopolitical risk premium at its highest level in years.
