Brent crude oil prices climbed above $126 per barrel as U.S. President Donald Trump considers resuming military action against Iran, raising fresh concerns over global oil supply disruptions.
Brent crude rose by 8.28% to $126.31 per barrel, the highest it has reached since June 2022. Meanwhile, West Texas Intermediate (WTI) crude also jumped by 3.37% to $110.48 per barrel.
The surge in global oil prices comes as President Trump is set to receive a military briefing on Thursday from CENTCOM Commander Adm. Brad Cooper, according to a report by Axios, citing unnamed sources. The planned briefing signals a potential return to military strikes on Iran in a bid to force Tehran to agree to core US demands.
Earlier on Wednesday, Trump stated that the blockade of the Strait of Hormuz, a critical global oil transit route handling about 20% of the world’s oil supply, would remain in place until Iran agrees to abandon its nuclear ambitions.
“The blockade is somewhat more effective than the bombing. And it is going to be worse for them. They can’t have a nuclear weapon,” Trump said. He added that Iran is pushing for the blockade to be lifted, but he does not want to lift it because he does not want them to have a nuclear weapon.
Oil prices have remained highly sensitive to geopolitical developments since the conflict began on February 28, following a joint US-Israel military strike that reportedly killed Iran’s Supreme Leader.
The Strait of Hormuz, connecting the Persian Gulf to the Gulf of Oman, serves as a critical artery for international oil shipments. While Trump's gesture of renaming it the 'Strait of Trump' appears largely symbolic, it amplifies the geopolitical tensions involving the United States and Iran.
The Strait has long been a flashpoint in relations between the two countries, frequently at the centre of disputes over security, sanctions, and freedom of navigation. International waterways such as the Strait of Hormuz are governed by longstanding conventions and global recognition, making any unilateral renaming effectively impossible.
Nonetheless, the timing of the message has added to market jitters as oil prices climbed, with concerns growing over potential disruptions to supply. The surge followed an Axios report that Trump rejected Iran’s proposal to reopen the Strait of Hormuz, indicating the blockade may persist until a wider nuclear agreement is reached.
