Oil jumps above $120 as extended Iran blockade rattles markets
Oil jumps above $120 as extended Iran blockade rattles markets
Oil prices surge to fresh highs on reports of a prolonged Iranian blockade, signaling volatility as energy threats loom and White House talks weigh on supplies.
Oil prices surged as reports of an extended Iran blockade spread across markets. The global Brent crude benchmark rose above $120 a barrel, briefly hitting $122, its highest price since 2022. The White House held discussions with energy executives, including Chevron's Mike Wirth, about ways to limit the impact on American consumers as the conflict threatens supply routes through the Strait of Hormuz, which normally carries about a fifth of the world’s oil and LNG.
Iran has warned it will disrupt traffic through the strait in response to the US blockade, and the US has said forces would intercept or turn back vessels bound for Iran's ports. Market traders have taken the White House meeting as a sign that the blockade could persist, providing firm price support in the near term.
The persistent volatility underscores how geopolitics remains a central driver for oil markets, with investors watching developments in energy production, oil futures, and shipping routes. As long as the Strait of Hormuz remains effectively restricted, prices could stay elevated even if demand holds steady.
