Punjab Newsline | New Delhi
International crude oil prices have witnessed a sharp surge once again, with Brent crude jumping to $120 per barrel on Thursday—marking its highest level since 2022. The spike is driven by concerns over global supply disruptions amid the ongoing conflict in West Asia and fears surrounding prolonged U.S. restrictions on Iranian ports and exports.
Deepening U.S.-Iran Conflict Fuels Energy Crisis
A key factor behind the rising energy crisis is the escalating tension between the United States and Iran. According to reports, U.S. President Donald Trump has rejected Iran’s proposal to reopen the Strait of Hormuz. Trump has maintained that restrictions will remain in place until a comprehensive nuclear agreement is reached.
To mitigate the potential impact of supply disruptions, Trump has also held discussions with major oil companies. Taking to his “Truth Social” platform, he warned Iran to “act wisely soon,” while sharing an AI-generated image depicting himself holding a weaponfurther intensifying the rhetoric.
Oil Futures Continue Upward Momentum
Brent crude futures for June delivery rose by $1.91 (1.62%) to reach $119.94 per barrel, continuing gains for the ninth consecutive day. Meanwhile, the more active July contract climbed 0.85% to $111.38 per barrel.
U.S. West Texas Intermediate (WTI) crude also gained 0.59%, reaching $107.51 per barrel. Notably, WTI has recorded gains in eight out of the last nine trading sessions.
Supply Concerns May Drive Further Volatility
Market analysts believe that the chances of a quick resolution to the Iran conflict or the reopening of the Strait of Hormuz remain slim. If U.S. restrictions persist, limited storage capacity and constrained Iranian exports could deepen the global supply crunch. This may lead to heightened volatility in crude oil prices in the coming days.
