Global oil prices moved very fast on Thursday and crossed the $120 mark. At one point, prices even touched $122, which is the highest level seen since 2022. This sudden rise happened because people are worried about long supply problems due to the ongoing conflict between the US and Iran. When supply looks tight, prices usually go up, and that is exactly what we are seeing now.
Brent crude for June delivery increased by about 1.9 percent and reached close to $120 per barrel. At the same time, US West Texas Intermediate, also known as WTI, climbed to around $107. These numbers may look simple, but they show a strong upward trend that has been building for days. The market is clearly nervous, and every new update is pushing prices higher.
Strong Price Rally Continues in Oil Market
The current price jump is not a one-day event, it is part of a bigger rally. Just a day before, Brent oil jumped nearly 6 percent, while WTI surged by about 7 percent. That means prices have been rising for several days in a row. When markets move like this, it shows strong momentum and growing concern among traders.
Why is this happening so quickly? Think of it like a water pipe getting blocked. When the flow stops, pressure builds up. In the same way, when oil supply is at risk, prices shoot up fast. This is what the global market is reacting to right now.
US Strategy Adds Pressure on Iran
The situation became more serious after the US President asked officials to prepare for a long blockade of Iran. This move is expected to reduce oil supply even more. Less supply in the market means higher prices, and that is what traders are expecting.
In a statement given to Axios, the US President said that the blockade will continue until Iran agrees to a nuclear deal. He also said that the blockade is more effective than bombing and that Iran is under strong pressure. His message was clear that Iran will not be allowed to develop nuclear weapons.
He also rejected Iran’s idea to reopen the Strait of Hormuz before talks begin. According to him, Iran must first answer US concerns. While he said the blockade is the main plan, he also hinted that military options are still possible, though no details were shared.
Strait of Hormuz Becomes the Center of Crisis
The Strait of Hormuz is now the biggest focus in this situation. This narrow water route is very important because it carries about one-fifth of the world’s oil and gas supply. When such a key route is affected, the whole world feels the impact.
Since February 28, when US and Israeli air strikes on Iran started, shipping in this area has been heavily disturbed. Iran has limited movement through the strait and is allowing mostly its own ships. In response, the US has increased its blockade on Iranian vessels.
This situation is like closing a major highway. If trucks cannot pass, goods do not reach their destination. In the same way, when oil cannot move freely, global supply drops, and prices rise quickly.
Global Energy Shock Hits Markets
Because of these disruptions, the world is now facing one of the biggest energy shocks in recent years. Even though some ships are still trying to cross the area, the overall supply is still limited. This keeps markets under pressure and prices remain high.
The uncertainty is the biggest problem here. Nobody knows how long the blockade will continue. And when there is no clear answer, markets become unstable. Investors and traders start reacting emotionally, which pushes prices even higher.
Talks and Meetings Add More Drama
On Wednesday, the US President held talks with major oil companies. The goal was to understand how to manage the situation if the blockade continues for months. This shows that even the government is preparing for a long crisis.
At the same time, efforts to solve the conflict are stuck. There is no agreement yet, and the situation remains tense. The conflict has already caused thousands of deaths and created a huge impact on global energy supply.
Analysts are calling this one of the biggest supply disruptions in recent history. When experts use such strong words, it shows how serious the situation really is.
OPEC+ and UAE Move Bring New Questions
On the supply side, the OPEC+ group is planning to discuss a small increase in oil production. Reports suggest they may add around 188,000 barrels per day. This could help reduce pressure slightly, but it may not be enough to balance the market.
Another big development is that the United Arab Emirates has decided to leave OPEC starting May 1. This decision has raised questions about how well the group can control prices in the future. If major members leave, the group becomes weaker.
Interestingly, the US President welcomed this move. He said it could help lower global oil and gas prices. But whether that actually happens or not is still uncertain.
Oil Prices Show Big Swings
Since the conflict started, oil prices have been moving up and down very quickly. In April, prices dropped to around $90 per barrel when there were signs of easing tensions. But that did not last long.
In the last 12 days, prices have been rising again as the blockade continued. This shows how sensitive the market is to news and events. Even small changes in the situation can lead to big price movements.
FAQs
What caused oil prices to cross $120
Oil prices rose due to supply fears from the US and Iran conflict.
Why is the Strait of Hormuz important
It carries about one-fifth of the world’s oil supply.
What is the US blockade about
It aims to pressure Iran into agreeing to a nuclear deal.
Will oil prices keep rising
Prices may rise if the conflict continues.
What is OPEC+ planning
They may increase oil production slightly.