Oil Surges Past $120 as Prolonged US Blockade on Iran Raises Global Supply Concerns

By Staff, Agencies

Brent crude prices climbed above $126 per barrel on Wednesday, reaching their highest level since 2022, after US President Donald Trump signaled that the blockade of Iranian ports could continue for months while negotiations remain stalled.

Oil prices have risen sharply, gaining more than 13% within 24 hours, marking their highest point since the conflict began on February 28. The last time prices exceeded $120 was during the early period following Russia’s 2022 invasion of Ukraine, when they peaked at $139.

Markets have been unsettled by indications that the United States may maintain its naval blockade, while Iran has continued restricting tanker traffic through the Strait of Hormuz, a key global oil route.

Planned US-Iran talks in Islamabad over the weekend did not take place, prolonging the deadlock. Trump warned that Iran should act quickly and discussed with oil executives the possibility of sustaining the blockade for an extended period.

US officials believe the strategy could pressure Iran’s oil sector by limiting exports and forcing storage capacity to fill. However, analysts remain uncertain about how long this process would take.

Trump also suggested the blockade has been highly effective, comparing its impact to other military measures.

As the conflict nears its tenth week, it has already exceeded earlier expectations of a shorter duration. The disruption in the Strait of Hormuz has significantly reduced global oil supply, contributing to rising prices.

Economic analysts warn that a prolonged standoff could push oil prices even higher, with some projections suggesting prices could approach $190 per barrel if the situation continues for several months.

There are also growing concerns about wider economic consequences. Some economists have cautioned that an extended disruption could increase the likelihood of a global recession.

The surge in oil prices has already contributed to rising inflation, with noticeable economic impacts in both the United States and Europe. Meanwhile, diplomatic efforts continue, with Iran engaging internationally to strengthen its position as tensions with the US persist.