Oil Crosses $109 a Barrel And It Is Still Not Over: What Indian Investors Must Know Right Now

UAE Barq first reported it on March 28th — Brent crude hit $112.57. One week later, physical oil is trading at $141.36 and the Strait of Hormuz remains effectively closed. Here is exactly where things stand today, and what it means for your money in the UAE.

How Much Does Oil Cost Today? — April 3rd, 2026

A news report out of UAE Barq — the verified UAE media outlet — first broke this story on March 28th: “Because of interruptions in the supply chain, oil has reached its highest point since 2022 — Brent crude hits $112.57.” It has been one week since then. The situation is rapidly developing. Here is how things look today.

Currently, the cost of Brent crude oil is $109.03 per barrel — and that comes after an extremely turbulent week with sharp price swings in all directions. In March, Brent rose nearly 55%. That is a record for the Brent contract dating all the way back to when it was first created in 1988. The prior record for the greatest single-month percentage increase was a 46% rise in September 1990 — during the first Gulf War.

Why Are Prices So High? — The Strait of Hormuz

Prior to the start of hostilities in late February, the Strait of Hormuz carried about one-fifth of the world’s total seaborne oil shipments. Since the war began on February 28th, tanker traffic through the Strait has essentially ceased. By mid-March, Iran had confirmed 21 attacks on merchant vessels. Tanker traffic initially fell by approximately 70% — and then fell to near-zero.

Iran’s IRGC Navy has imposed a de facto toll on commercial tankers using the Strait, denominated in Chinese yuan. Tankers that refuse to pay face boarding and delays. Oil prices rose significantly on Thursday after President Trump stated his intention to escalate U.S. military action against Iran over the coming weeks — and provided no concrete plan for reopening the Strait.

The April 6 Deadline — What Happens After That?

President Trump announced on Wednesday evening that he would temporarily suspend missile strikes against Iran’s power plants until April 6th, 2026 at 8 PM EST — citing ongoing negotiations with Iran.

Trump has warned Iran to immediately reopen the Strait of Hormuz or face strikes on its oil fields, power plants, and Kharg Island — from which approximately 90% of Iran’s crude exports originate. If the blockade remains in place, analysts expect global oil prices to reach $150 to $200 per barrel — a range that could trigger a global recession.

What Does This Mean for Indian Investors and NRIs?

Your UAE property will not collapse tomorrow because of oil prices. But everything surrounding your investment is getting tighter — and it would be unwise to ignore what is happening around you.

• 1 Cost of Living in the UAE Is Rising Energy, transportation, and food costs in the UAE track closely with oil. As Brent stays above $100, residents are feeling this in daily expenses — from petrol at the pump to grocery bills and utility costs.
• 2 Indian Rupee Under Downward Pressure India imports over 85% of its oil. Every dollar increase in crude costs India more in foreign exchange — weakening the rupee. If you are repatriating money from UAE to India, you receive fewer rupees per dirham than you did in January.
• 3 Dubai Real Estate Sentiment Is Cooling Uncertainty freezes buyer decisions and slows new developer launches. This does not mean prices are crashing — but transaction volumes are declining as buyers wait to see how April 6th plays out.
• 4 Flight Costs Are Surging Gasoline in the USA averaged over $4 per gallon for the first time since 2022. Aviation fuel moves in the same direction — making India-UAE travel noticeably more expensive than six weeks ago.
• 5 UAE Government Revenue Is Rising — One Silver Lining Higher oil revenue provides long-term support for Abu Dhabi’s infrastructure spending and economic stability. For long-term investors, this is a structural positive — UAE governments are more flush, not less, during oil price spikes.

What You Should and Should Not Do Right Now

Do not make panicked financial decisions based on a single day’s headlines. April 6th could bring escalation, a deal, or yet another extension. The most important thing right now is to stay informed and stay calm. History shows that geopolitical oil spikes — even large ones — eventually resolve.

• ✔Hold your UAE property. Do not panic sell into an illiquid market. Distressed sellers always get the worst price.
• ✔Do not transfer large sums to or from the UAE until April 6th passes and the picture becomes clearer.
• ✔Watch the physical oil spot price — not just futures. At $141 spot, the real supply crunch is far worse than the $109 futures headline suggests.
• ✔Review your property insurance policy for war and conflict exclusions — most standard policies exclude acts of war from coverage.
• ✔Speak to your CA about FEMA implications before moving money across borders in either direction under current conditions.
• ✔If you are in the UAE — stay registered with the Indian Embassy and follow @modgovae on X for real-time safety alerts.