As President Donald Trump considers a prolonged embargo of Iranian ports, oil prices hit $123 per barrel on Thursday morning, their highest level since 2022.
The worldwide standard, Brent crude, was up over 12% early on Thursday, reaching $126 at one point. The US standard, WTI crude, surpassed $110 per barrel after rising more than 3%.
Due to the breakdown of face-to-face negotiations between the United States and Iran, the Strait of Hormuz, a vital route for the transportation of petrol and oil, is essentially closed, which has caused global crude prices to soar in recent days.According to people involved with the discussions who spoke with CNN, Trump stated during a meeting with his top advisors that he wants the US naval blockade of Iranian ports to continue. His staff has started preparing for such an extension, including a longer-term blockage of the Strait of Hormuz.
Since the battle started in late February, there have been almost no daily transits over the strait, which has caused the "largest supply disruption in history," according to the International Energy Agency.
Trading volume has moved to the July futures since the June Brent contract is scheduled to expire at the end of Thursday's session. On Wednesday night, that more active contract surpassed $113 per barrel.