Brent briefly crosses $120 as US weighs potential military strikes on Iran.
Nuclear negotiations stall, with both sides rejecting key demands.
Ongoing Hormuz blockade risks prolonged disruption and global slowdown.
Crude Surges Past $120 to 4-Year High on Reports of Potential US Strike on Iran
Oil hits a four-year high above $120 as reports of potential US military action on Iran rattle markets and prolong Strait of Hormuz disruption fears
Summary
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Global crude oil prices surged on Thursday, briefly breaching the psychologically crucial $120 per barrel mark—the highest level since 2022, nearing a four-year high.
In early trade, benchmark Brent crude rose to $122 per barrel, while US West Texas Intermediate (WTI) climbed to $108.35 per barrel.
Oil markets turned sharply volatile after reports suggested that the United States is considering potential military action against Iran, as peace negotiations between the two countries remain stalled.
The latest ceasefire proposal from Iran was deemed “dissatisfactory” by US President Donald Trump, who has maintained a hardline stance on Tehran’s nuclear programme.
Trump is scheduled to receive a briefing on Thursday on plans for a series of military strikes against Iran, in a bid to pressure Tehran back into negotiations, Reuters reported, citing Axios.
Following the breakdown of the first round of talks, Washington announced a naval blockade of the Strait of Hormuz.
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Iran has refused to participate in further negotiations while the blockade remains in place. The US has also demanded a complete surrender of Iran’s enriched uranium and a 20-year moratorium—terms Tehran has rejected as “excessive,” leaving both sides far from a compromise.
Trump Meets Oil Majors
Trump met top executives from leading US oil companies, including Chevron, on Tuesday to assess the market outlook if the Hormuz blockade continues for an extended period, according to a White House official.
Discussions focused on US oil production, futures markets, shipping logistics, and natural gas supply.
“They discussed the steps President Trump has taken to stabilise global oil markets, as well as measures to sustain the current blockade for months, if needed, while minimising the impact on American consumers,” the official said.
Market Volatility Deepens
Global oil markets have remained highly volatile since the onset of the conflict on February 29.
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Crude prices have surged to multi-year highs, prompting the US to ease some sanctions on Russian oil while the International Energy Agency (IEA) released its largest-ever emergency reserves to prevent prices from spiking toward $150 per barrel.
Analysts warn that if the conflict extends beyond mid-May and the Strait of Hormuz remains shut, it could trigger a global economic slowdown—or even a recession.