Oil extends gains with Brent at $120 as fears of an extended U.S.-Iran conflict rise
Oil prices are surging due to escalating U.S.-Iran tensions, with Brent crude reaching around $120 per barrel amid fears of prolonged supply disruptions. This marks a continuation of sharp gains, following a 6% jump the previous day.
Current Prices
Brent crude futures rose nearly 2% to $120 per barrel on April 30, while West Texas Intermediate (WTI) traded around $107. These levels reflect the highest for Brent since mid-2022, driven by market reactions to the conflict.
Conflict Background
The U.S. has imposed a naval blockade on Iranian exports and the Strait of Hormuz, rejecting Iran’s ceasefire proposals and demands to reopen the strait. Exports through the strait have dropped to just 4% of normal levels, severely constraining global oil supplies that typically handle 20% of seaborne trade. Stalled nuclear talks and President Trump’s directives for a sustained blockade have heightened fears of extended disruptions.
Market Impact
Analysts estimate a $14 per barrel risk premium due to potential month-long halts in Hormuz flows, though partial offsets like pipelines mitigate some effects. Prices have climbed over 48% since the conflict began in late February 2026. This rally persists despite earlier volatility, as peace efforts collapsed.
