Brent Oil Hits $112 as 2026 Iran War Disrupts Strait of Hormuz Trade

Brent crude oil prices surged above $112 per barrel as disruption to the Strait of Hormuz triggered by the ongoing war involving Iran sent shockwaves through global energy markets, prompting diplomatic efforts, economic warnings, and consumer anxiety across multiple continents. EU High Representative for Foreign Affairs Kaja Kallas held talks with Iranian Foreign Minister Abbas Araghchi, stating that the security of the Strait of Hormuz is a priority for the European Union. Governments from Canberra to Brussels scrambled to assess the economic fallout, while energy analysts warned that the price shock could reshape consumer behaviour for years to come. 112 (USD per barrel) — Brent crude price threshold breached amid Hormuz crisis

The Strait of Hormuz has been a flashpoint in global energy security for decades, with previous disruptions threatening oil flows on multiple occasions, according to The Independent. The waterway, roughly 167 kilometres long, sits between Iran to the north and the Musandam Peninsula shared by the United Arab Emirates and Oman to the south. Its strategic importance stems from the volume of global oil exports that transit through it. The current disruption follows the outbreak of the US-Israel war on Iran, which began on February 28, 2026, and resulted in the death of Supreme Leader Ali Khamenei in the initial strikes.

Australia's government moved quickly to calm public concern, with Prime Minister Anthony Albanese urging residents to avoid panic buying and stating that fuel supply levels remain stable, according to Reuters. The reassurance came as the Australian Treasury released new analysis forecasting higher inflation and a significant hit to the country's gross domestic product as a result of the Iran war, Reuters reported. The dual signals — official calm on supply alongside official alarm on macroeconomic impact — illustrated the difficulty governments face in managing public expectations during an acute energy shock. Australia, as a major importer of refined fuel products, faces particular exposure to disruptions in Persian Gulf shipping lanes.

EU divided as excise tax relief stalls past Easter European Union leaders remained divided over how to respond to the surge in fuel prices, with discussions over a potential reduction in excise taxes pushed back to after Easter and conditioned on an escape clause, according to NewsIT. The bloc's internal disagreements were on display even as Kallas pressed Iran's foreign minister on Hormuz security, underscoring the gap between the EU's diplomatic posture and its ability to deliver a unified domestic economic response. The ANSA news agency reported that the EU found itself in an emergency, simultaneously managing pressure from United States President Donald Trump and defending its own Emissions Trading System amid the energy crisis. The combination of external geopolitical pressure and internal fiscal disagreement left European consumers facing sustained high pump prices with no immediate relief in sight.

Japan's pacifist constitution faces Trump pressure over Hormuz The crisis is also testing the limits of Japan's pacifist constitutional framework, as pressure from President Donald Trump regarding the Strait of Hormuz forces Tokyo to weigh military and logistical contributions it has historically avoided, according to Reuters. Japan, as one of the world's largest importers of Middle Eastern oil, has an acute economic interest in keeping the waterway open, but its pacifist constitutional constraints limit the options available to its government. The Reuters explainer framed the situation as a direct collision between alliance obligations to Washington and Tokyo's foundational legal and political identity. Meanwhile, analysts cited by Reuters noted that the gasoline price surge driven by the Iran war could accelerate a structural shift in consumer behaviour, pushing buyers toward electric vehicles and hybrids as the cost of filling a conventional tank climbs. That potential long-term demand shift, if sustained, could alter the economics of the very oil market now in crisis.