April 30 A Brent crude price surge pushed the global benchmark above $126 per barrel on Thursday, its highest level in four years, as escalating United States–Iran tensions disrupted oil supply routes.
The spike followed reports that U.S. President Donald Trump would be briefed on military options against Iran, including potential air strikes, while diplomatic talks between the two sides stalled, according to market data and officials.
Brent crude touched an intraday high of $126.41 before easing to around $122, while U.S. benchmark West Texas Intermediate traded between $108 and $110 per barrel, data from LSEG and CNBC showed.
Supply concerns centred on the Strait of Hormuz, a critical global oil chokepoint, which Goldman Sachs estimated was operating at roughly 4% of normal capacity due to the ongoing conflict and naval disruptions.
Iranian President Masoud Pezeshkian said any U.S. attempt to extend a blockade of Iranian ports was “doomed to failure,” according to state media, while Oil Minister Mohsen Paknejad urged citizens to cut fuel consumption.
In Washington, U.S. Defence Secretary Pete Hegseth told Congress the administration was seeking a $1.5 trillion defence budget, describing opposition to the Iran campaign as a key challenge.
Financial markets reacted to the supply shock, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng both falling more than 1% in Thursday trading, reflecting investor concerns over rising energy costs.
The World Bank warned that prolonged disruption could push global energy prices up to 24% in 2026, increasing the risk of inflation and economic instability worldwide.
