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Oil prices rose sharply on Thursday as the international benchmark, Brent, briefly surpassed $126 per barrel. This followed signals from U.S. President Donald Trump regarding an extended blockade on Iran and expectations that he will review military options with commanders.
Rising more than 7%, Brent hit its highest level in over four years, while U.S. benchmark WTI gained around 3% to $110.31. Both later trimmed gains, with Brent easing to $123 per barrel and WTI to $109.3 as of 5:55 a.m.
Meeting oil executives at the White House on Wednesday, Trump discussed extending the blockade targeting Iranian ports, which Tehran has demanded must end before any agreement.
In separate remarks to Axios, he argued the blockade is "more effective than bombing," framing it as a sustained pressure tool on Iran’s economy.
U.S. Central Command (CENTCOM) pointed to tangible results, announcing it had reached a "significant milestone" after redirecting the 42nd commercial vessel attempting to bypass the blockade.
The command added that 41 tankers, carrying a total of 69 million barrels of oil, remain unable to be sold by Iran, with the value of the stranded cargo estimated at more than $6 billion.
At the same time, Washington is actively reviewing escalation scenarios.
Trump is set to receive a briefing on Thursday from Admiral Brad Cooper, head of CENTCOM, on new plans for potential military action against Iran that could push prices further, sources told Axios.
Oil prices, starting the year around $60 per barrel, have come into strain as shipping traffic through the Strait of Hormuz, a key energy artery that normally carries a fifth of oil and LNG flow, has been disrupted since the start of the conflict on Feb. 28.
The disruption has already cut off around 13 million barrels per day of oil flows through the Strait of Hormuz, out of roughly 20 million barrels, according to the International Energy Agency (IEA).
The blockade on Iranian ports also cuts a significant share of Iran’s oil exports, particularly affecting supply to China.
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