Brent Rises To 4-Year High

Brent crude futures climbed above $115 per barrel on Wednesday, the highest level since June 2022, marking an eighth straight session of gains as concerns over global supply intensified. Ongoing US-Iran tensions and the effective closure of the Strait of Hormuz continue to tighten the supply outlook. President Donald Trump said Iran has called for the US to lift its naval blockade while negotiations continue. The shutdown of the strait, which normally handles about 20% of global oil trade, has triggered what the International Energy Agency described as the largest supply shock on record. Meanwhile, Washington is stepping up pressure with potential sanctions targeting Chinese refiners and countries paying transit fees through Hormuz. In a separate development, the UAE said it will exit OPEC next month to gain more flexibility in adjusting production.

Brent increased to 113.47 USD/Bbl, the highest since June 2022. Over the past 4 weeks, Brent Crude Oil gained 5.58%, and in the last 12 months, it increased 85.69%.

Brent crude futures rose above $112 per barrel on Wednesday, gaining for the eighth straight session, supported by mounting uncertainty around global supply as US-Iran peace talks stalled and the Strait of Hormuz remained effectively closed. President Donald Trump said Iran has urged the US to lift its naval blockade of the strait while negotiations to end the conflict continue, with disruptions already constraining energy flows from the Middle East. The shutdown of this vital corridor has halted roughly 20% of global oil shipments, triggering what the IEA called the largest supply shock on record. At the same time, the US intensified pressure on Iran through additional measures, including potential sanctions on Chinese refiners linked to Tehran and on countries paying transit fees to secure passage through Hormuz. Elsewhere, the ongoing conflict has prompted the UAE to announce its exit from OPEC next month for greater flexibility in adapting to shifting market conditions.