Oil prices today: Brent tops $120, hits highest level since 2022 as Trump doubles down on Hormuz blockade
Global oil prices surged past $120 on Thursday, briefly touching $122, the highest level since 2022 as fears of prolonged supply disruptions intensified amid a deadlock in talks to end the US conflict with Iran.Brent crude for June delivery rose around 1.9% to near $120 a barrel, while US West Texas Intermediate (WTI) edged up to about $107. The rally builds on strong gains from the previous session, when Brent jumped nearly 6% and WTI surged 7%, extending a streak of rising prices over several days.The spike comes after US President Donald Trump directed officials to prepare for a prolonged blockade of Iran, tightening pressure on global energy supplies.Speaking to Axios, Trump signaled that the US naval blockade would remain in place until Tehran agrees to a nuclear deal. “The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon,” he said.Trump also rejected Iran’s proposal to reopen the Strait of Hormuz before negotiations begin, insisting that Tehran must first address US concerns. While describing the blockade as his primary strategy, he indicated that military options remain available, though he did not provide details.
Hormuz disruption fuels global energy shock
Tensions have effectively choked shipping through the Strait of Hormuz, a vital corridor that typically carries about one-fifth of the world’s oil and LNG supply, since US and Israeli air strikes on Iran began on February 28.Iran has largely restricted shipping through the strait, allowing only its own vessels. In response, the US has stepped up its blockade of Iranian ships this month.The disruption has triggered one of the most severe global energy shocks in recent years. Despite some vessels reportedly crossing blockade lines, the overall flow remains heavily constrained, keeping markets on edge.Earlier on Wednesday, Trump held discussions with major oil companies on how to manage the impact of a potential months-long blockade of Iran’s ports, a White House official said.The meeting came amid a continuing deadlock in efforts to resolve the conflict, which has claimed thousands of lives and triggered what analysts describe as one of the largest disruptions to global energy supplies.On the supply front, the OPEC+ alliance is expected to consider a modest increase of around 188,000 barrels per day in output quotas at its upcoming meeting on Sunday, according to Reuters sources.However, the recent exit of the United Arab Emirates from OPEC, effective May 1, has raised fresh questions about the group’s ability to manage prices.Trump however, welcomed the United Arab Emirates’ decision to exit the OPEC and OPEC+ alliance, saying the move could help bring down global oil and gas prices.Oil prices have seen sharp swings since the conflict began, driven largely by uncertainty around the Strait of Hormuz. While prices briefly dipped to around $90 a barrel in April following temporary de-escalation signals, they have since climbed steadily over the past 12 days as the blockade continued.
