The price of Brent crude oil has surpassed $126 per barrel, marking its highest level since the onset of Russia’s full-scale invasion of Ukraine. The increase, reported to be 7.1%, later moderated, with prices dropping to below $115 per barrel by 16:35 Kyiv time.
According to The Wall Street Journal, this spike in oil prices is linked to reports that U.S. President Donald Trump has instructed aides to prepare for a prolonged blockade of Iran. Bloomberg has noted that the U.S. Central Command has requested the deployment of Dark Eagle hypersonic missiles to the Middle East for potential strikes against Iran.
Additionally, Axios has reported that U.S. military planning includes a strategy for a “short and powerful” series of strikes targeting infrastructure within Iran. As of April 28, over 20 vessels remained at Iran’s Chabahar port, a strategic outlet to the Indian Ocean, compared to an average of five vessels anchored or docked daily prior to the blockade.
On February 28, the U.S. commenced a joint military operation with Israel against Iran, resulting in the deaths of high-ranking officials, including Supreme Leader Ayatollah Ali Khamenei and key military figures. In retaliation, Iran launched attacks on U.S. bases and allied infrastructure in the Persian Gulf, while also blocking shipping routes in the Strait of Hormuz, through which approximately 20% of global maritime oil supplies transit.
This conflict has compelled major oil producers in the Gulf region to significantly reduce crude oil production, contributing to the rise in fuel prices. Analysts from the Financial Times have identified Russia as a primary beneficiary of the situation in Iran, noting that prices for Russian Urals crude have reached a 13-year high.
U.S. Treasury Secretary Scott Bessent indicated that the United States may consider lifting restrictions on Russian oil, with assessments suggesting that Russia could have earned no more than $2 billion from the current circumstances.
The surge in Brent crude oil prices to over $126 per barrel is attributed to escalating tensions between the U.S. and Iran, following military operations and potential blockades. This situation has significant implications for global oil supply and pricing.
Source: CNN