Brent Extends Rally as Iran War Intensifies

Brent crude futures jumped above $113 per barrel on Thursday, reaching their highest levels since 2022 following reports that the US military would brief President Donald Trump on potential action against Iran, heightening fears that the conflict could escalate further. Trump also reportedly rejected Tehran’s proposal and reaffirmed that the US will maintain its naval blockade until a nuclear agreement is reached, further weakening prospects for a diplomatic resolution. Iranian authorities warned of retaliation if the blockade continues, accusing Trump of attempting to force Tehran into submission through economic pressure and internal destabilization. Meanwhile, US inventory data showed steep declines in crude and fuel stockpiles, while exports surged to record levels above 6 million barrels per day, signaling tightening global supply conditions amid ongoing geopolitical disruption.

Brent crude futures climbed above $112 per barrel on Thursday, rallying nearly 15% so far this week as the ongoing Middle East conflict kept the Strait of Hormuz effectively closed, cutting off significant volumes of global energy flows. President Donald Trump stated that the US will maintain its naval blockade on Iran until a nuclear agreement is reached, while also outlining potential measures to extend the blockade with limited impact on domestic consumers during talks with oil and trading executives. At the same time, Iranian authorities warned of retaliation should the blockade persist and accused Trump of attempting to coerce Tehran into submission through economic pressure and internal destabilization. Elsewhere, US inventory data showed sharp declines in crude and fuel stockpiles, while exports surged to record highs above 6 million barrels per day, underscoring tightening global supply.

Brent Crude Oil rose above 120, according to trading on a contract for difference (CFD).