Oil Prices Spike Above $100 Amid Middle East Supply Disruption
Oil prices surged above $100 per barrel in March 2026 due to an exceptional supply disruption in the Middle East, where petroleum shipments through the Strait of Hormuz declined and several producers reduced output.
The International Energy Agency characterized the crisis as the largest oil-supply disruption recorded in the global market. Before the disruption, approximately 20 million barrels per day of crude oil and petroleum products passed through the Strait of Hormuz.
As shipping volumes fell sharply, Gulf countries were forced to reduce output because alternative pipelines and export routes could not immediately accommodate the displaced volumes.
The shock extended beyond crude oil, with reduced refinery operations and constrained exports contributing to higher prices for refined products. Businesses dependent on freight, air travel, or petroleum-based materials faced increased operating and distribution expenses due to costlier diesel and aviation fuel.