Global oil markets were thrown into fresh turmoil on Wednesday after Brent crude surged more than 7% to trade above $119 per barrel, its highest level in weeks, as escalating tensions between the United States and Iran reignited fears of prolonged supply disruptions in the Middle East.
The sharp rally came after U.S. President Donald Trump issued a renewed warning to Iran, urging Tehran to “sign a deal” and discussing plans for a possible months-long blockade that could further squeeze oil exports from the region.
Brent crude, the global benchmark for international oil prices, climbed to approximately $119.2 per barrel, while U.S. West Texas Intermediate (WTI) rose nearly 7 percent to around $106.8. The gains reflected mounting anxiety that the standoff could spiral into a wider supply crisis.
Continued Strait of Hormuz Closure
Analysts said the latest price spike was driven largely by fears surrounding the Strait of Hormuz, one of the world’s most strategically important shipping lanes through which roughly one-fifth of global seaborne oil normally passes. Any threat to tanker traffic through the strait tends to send crude prices sharply higher.
Shipping activity in the corridor has already slowed in recent weeks as military tensions intensified, prompting concerns over delays, insurance costs, and possible attacks on commercial vessels. Several producers in the Gulf region have also reportedly adjusted exports and contingency plans amid the uncertainty.
Trump’s latest rhetoric appears to have added fuel to already jittery markets. During remarks on Wednesday, the U.S. leader signaled that pressure on Iran could continue until Tehran agrees to new terms, raising speculation that sanctions, naval restrictions, or direct military actions may persist longer than expected.
The geopolitical shock has dramatically reversed earlier forecasts for cheaper oil in 2026. At the start of the year, many analysts expected Brent to average between $60 and $70 per barrel due to ample supply and slower global demand growth. However, conflict in the Gulf has since transformed the market outlook.
