Global oil markets surged sharply as geopolitical tensions intensified, with prices hitting their highest levels since 2022 following reports that Donald Trump is set to be briefed on new military options related to the ongoing Iran conflict.
Benchmark Brent crude jumped nearly seven per cent to exceed $126 per barrel, marking its strongest level since the early days of the Russia-Ukraine war. Meanwhile, U.S. crude, West Texas Intermediate crude, also climbed, reflecting growing concern over supply disruptions.
The spike comes as reports suggest the United States Central Command has developed plans for a series of “short and powerful” strikes targeting Iranian infrastructure, aimed at breaking the current deadlock in negotiations. Additional proposals reportedly include securing parts of the Strait of Hormuz to reopen commercial shipping lanes — a move that could involve ground troops.
Energy markets have been rattled by the effective closure of the Strait of Hormuz, a critical passage through which roughly one-fifth of the world’s oil supply typically flows. Iran’s threats to target vessels in the region, combined with a U.S. blockade of Iranian ports, have created a severe bottleneck in global energy shipments.
Prices had already been climbing earlier in the week amid stalled peace talks and fears of prolonged conflict. Additional concerns were fuelled by reports that U.S. officials are preparing for an extended blockade, further tightening supply.
Industry executives are also said to have met with President Trump to explore ways to shield American consumers from rising fuel costs, underscoring the economic ripple effects of the conflict.
With uncertainty surrounding both military developments and diplomatic outcomes, oil markets remain highly volatile, raising the likelihood of continued price increases that could impact fuel costs, inflation and global economic stability in the weeks ahead.