Brent Crude Price Hits Four-Year High of USD 126 As Donald Trump Signals Continued Blockade of Iranian Exports, Potential Military Escalation
The Brent crude price surged to USD 126.10, a four-year high, as US-Iran tensions escalated. President Donald Trump indicated the naval blockade of the Strait of Hormuz could last months, stifling 20 million barrels of daily supply. Analysts warn that continued disruption could push prices toward USD 190 and trigger a recession.
International energy markets witnessed a sharp escalation on Thursday as the Brent crude price hit a four-year high, driven by heightening geopolitical tensions between the United States and Iran. Market participants reacted to reports that the US Central Command is preparing to brief President Donald Trump on potential military action, raising fears of a renewed armed conflict.
The price surge followed the collapse of proposed talks in Islamabad and President Trump’s rejection of a proposal to reopen the Strait of Hormuz. With the naval blockade of Iranian exports remaining firmly in place, global supply chains are facing their most significant disruption in years, pushing energy costs to levels not seen since the early months of 2022. Oil Prices Surge Globally Amid Escalating US-Iran Conflict, Supplies Tighten.
Strait of Hormuz Closure Drives Brent Crude Price to Multi-Year Peak
June futures for the international benchmark Brent crude price rose 6.84% to USD 126.10 a barrel during Thursday's trading session. Simultaneously, US West Texas Intermediate increased by 3.14% to reach USD 110.24, reflecting a broader market anxiety over the tightening of global supplies.
According to data from LSEG, the Brent crude price has now climbed more than 13% within a 24-hour window. This rally is largely attributed to the effective closure of the Strait of Hormuz, where Goldman Sachs estimates that oil exports have plummeted to just 4% of their normal volume due to the ongoing US Navy blockade.
Economic Warnings Mount as Brent Crude Price Volatility Increases
The impact of the rising Brent crude price is being felt across the global economy, with US inflation reaching 3.3% in March. Analysts from Oxford Economics have warned that a six-month impasse in the region could send prices as high as USD 190 by August, while other experts suggest a global recession is increasingly likely if the waterway remains closed for another three months.
Strategic reserves and existing crude in transit have provided a temporary buffer, but experts note that product markets, particularly diesel, are under severe strain. While the UAE’s exit from OPEC may eventually boost output, analysts suggest this will occur too gradually to offset the immediate supply vacuum created by the blockade of Iranian facilities like Kharg Island.
Geopolitical Standoff and Future Outlook for Brent Crude Price
President Trump maintained a firm stance on Wednesday, stating that the blockade could continue for months if necessary to secure a broader nuclear agreement. In a social media post, he urged Tehran to reach a deal, while Iranian Foreign Minister Abbas Araghchi reportedly held calls with international counterparts to shore up diplomatic support. New LPG Cylinder Rules From May 1: Booking, OTP Delivery and Price Changes You Must Know.
Looking ahead, traders are closely monitoring tanker movements and political signals for any signs of de-escalation. If the current disruptions persist without a diplomatic breakthrough, some market analysts predict the Brent crude price could spike toward the USD 140 to USD 150 range, further testing the limits of global demand and economic resilience.
(The above story first appeared on LatestLY on Apr 30, 2026 11:58 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
