Oil prices briefly hit wartime high as Trump weighs new strikes on Iran

Oil prices experienced a significant surge to their highest level since the beginning of the US-Iran war early Thursday before retracting slightly on the strength of new reports suggesting that President Trump may resume attacks on the Islamic Republic.

The price of a barrel of Brent crude, which serves as the international benchmark, reached over $126 per barrel shortly after midnight ET, following Trump’s indication that he is inclined to maintain the ongoing blockade on Iranian ports in the Strait of Hormuz.

In a statement to reporters in the Oval Office on Wednesday afternoon, President Trump praised the effectiveness of the blockade, referring to it as a “genius” strategy. He emphasized that Iran would need to surrender and “cry uncle” in order to bring an end to the situation.

However, Brent prices saw a decline to nearly $116 per barrel after Axios reported overnight that Adm. Brad Cooper, the head of US Central Command, would be briefing Trump at the White House on plans for a potential “short and powerful” series of strikes aimed at compelling Iran to seek peace and abandon its nuclear ambitions.

President Trump had earlier expressed his belief to the same outlet that the blockade was proving to be more effective than bombing, but the timing of any future strikes remained uncertain.

Since the ceasefire between the US and Iran that was established on April 8, Trump has consistently issued warnings of potential military actions if necessary.

The current situation has created a sense of uncertainty in the oil market, with global implications for energy prices and geopolitical stability. It remains to be seen how the situation will evolve and whether diplomatic efforts will prevail over military escalation.