Brent crude futures break through $126 per barrel as fears of a prolonged supply crunch intensify
Brent crude prices jumped to a four-year high on Thursday after reports that President Trump is set to receive a briefing on potential military action against Iran, raising concerns that oil supply disruptions in the Middle East could extend further.
Citing sources with knowledge, Axios reported late on Wednesday that the US Central Command (CENTCOM) will brief a plan for a “short and powerful” wave of strikes on Iran, in a bid to accelerate negotiations and weaken Iran’s position. A ceasefire has held since early April, but talks to resolve the conflict have been deadlocked in recent days, with Iran’s leadership — a group that seems scattered and fractured — wanting some control over the Strait of Hormuz, as reparations for war damages were also brought up two weeks ago. Yesterday, reports emerged that Trump had rejected Iran’s latest offer, maintaining the naval blockade in the region until an agreement about Iran’s nuclear program is reached.
Brent crude futures jumped more than 7%, briefly touching $126 per barrel before retreating slightly — the highest price since Russia’s invasion of Ukraine in 2022. US West Texas Intermediate futures also extended their 7% gain in the previous session, reaching past $108 a barrel.
Trump discussed ways to mitigate the impact of a prolonged blockade on American consumers with oil companies on Tuesday, the White House said.
US equity futures, meanwhile, have broadly shrugged off the news. Contracts on the S&P 500 indicate a broadly unchanged open, as traders digest the bevy of mega tech earnings last night.
