Global crude markets experienced a dramatic surge Thursday, propelling prices to their strongest position in four years as speculation mounted regarding potential U.S. military intervention against Iran amid worsening supply constraints.
Brent crude futures for June delivery momentarily reached $123 per barrel during early European market hours, representing the strongest pricing since March 2022. Meanwhile, West Texas Intermediate contracts similarly advanced, touching approximately $108 per barrel before moderating as trading progressed.
The dramatic price movement followed an Axios disclosure revealing President Trump’s scheduled consultation with Admiral Brad Cooper, commander of U.S. Central Command, regarding potential military responses.
According to reports, the proposed strategies encompassed comprehensive strikes against Iranian infrastructure, special operations missions targeting Iran’s enriched uranium reserves, and initiatives designed to restore commercial navigation through the Strait of Hormuz.
This briefing emerges after several weeks of unsuccessful diplomatic engagement between the two nations. Sources indicate Trump expressed frustration to senior advisors regarding Tehran’s most recent offer — which proposed reopening the strategic waterway while postponing nuclear discussions — viewing it as evidence of duplicitous negotiation tactics.
Reporting from The Wall Street Journal additionally revealed that Trump has directed his team to develop contingency plans for a sustained naval quarantine of Iran while simultaneously pursuing international partners to establish a multinational force aimed at securing passage through the strait.
Key American allies have predominantly refused participation. Trump has previously voiced criticism toward NATO countries for their reluctance to provide military assistance to Washington and Israel during the conflict’s initial phases.
The confrontation with Iran reached its third full month on Thursday. Tehran established control over the Strait of Hormuz as hostilities commenced and has progressively strengthened its grip on the passage, implementing mandatory charges for commercial vessels transiting the channel.
The U.S. Navy has simultaneously enacted limitations on maritime traffic associated with Iranian harbors, creating a tense standoff at one of the planet’s most strategically vital petroleum transit points.
Analysts at ING characterized the market shift as moving “from over-optimism to the reality of the supply disruption we are seeing in the Persian Gulf.”
The United Arab Emirates disclosed earlier this week its intention to withdraw from OPEC, potentially indicating future production increases from the Gulf nation. Nonetheless, market observers emphasized that the UAE appears unlikely to boost output immediately given conflict-related complications.
ING’s current assessment places daily supply losses at approximately 1.6 million barrels. The financial institution cautioned that prolonged disruption will increasingly force markets to depend on consumption reduction rather than stockpile drawdowns to maintain balance.
“The only way to drive this would be through higher oil prices,” ING analysts said.
Brent crude reversed course during Thursday’s later trading, declining 0.9% to settle at $117 per barrel by mid-morning. The June Brent futures contract reaches expiration on Thursday.
U.S. Central Command has allegedly finalized blueprints for a “short and powerful” series of strikes targeting Iranian assets, although no official announcement regarding implementation has been released.
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