Oil Prices Surge as Iran Conflict Shows No Signs of Abating
Al Jazeera Staff
Global oil prices have risen sharply over the past week, with Brent crude reaching $126.41 per barrel amid prolonged tensions in the Strait of Hormuz and stalled ceasefire talks between the U.S. and Iran. The conflict, which began with U.S.-Israeli airstrikes on Iran on February 28, has disrupted one-fifth of the world's oil and LNG supply. U.N. Secretary-General Antonio Guterres warned that if the waterway closure continues beyond mid-year, it could slash global growth, fuel inflation, and push tens of millions into poverty.
Global oil prices continued to climb as the conflict in Iran remains deadlocked, with Tehran maintaining its blockade of the Strait of Hormuz and the U.S. Navy enforcing sanctions on Iranian ports and crude exports.
On Friday (GMT), international benchmark Brent crude rose 89 cents to $111.29 per barrel, compared with around $65 before the U.S. and Israel began airstrikes on Iran on February 28. According to Reuters, Brent has gained 5.7% this week.
Brent crude futures for June also continued rising on Thursday, touching $126.41 per barrel before expiry—the highest level since March 2022, Reuters reported.
A ceasefire brokered by Pakistan between the U.S. and Iran took effect on April 8 to pave the way for negotiations. However, on Thursday evening, Iranian Foreign Ministry spokesman Esmaeil Baghaei stated that expecting quick results is unrealistic, according to IRNA. “Expecting to achieve results in a short time, regardless of who the mediator is, is unrealistic in my view,” he said.
Iran has threatened retaliatory strikes if the U.S. continues its attacks, including on targets in neighboring Gulf states.
On Friday, United Arab Emirates presidential adviser Anwar Gargash wrote on social media platform X that no unilateral Iranian commitment to freedom of navigation through the Strait of Hormuz can be trusted, citing Tehran’s “treacherous aggression” against neighboring countries.
One-fifth of the world’s oil and liquefied natural gas (LNG) supply passes through the strait, which connects Gulf producers to open ocean in peacetime.
U.N. Secretary-General Antonio Guterres warned that if the disruption caused by the closure of this waterway extends past mid-year, global growth is expected to fall, inflation will rise, and tens of millions of people could slide into extreme poverty and hunger. “The longer this artery is constricted, the harder it will be to reverse the damage,” he told reporters in New York on Thursday.
Meanwhile, a White House official said on Wednesday that U.S. President Donald Trump had asked American oil companies to find ways to mitigate the impact of a months-long blockade of Iranian ports. The official said the president and oil executives “discussed the measures President Trump has taken to ease the global oil market, and the steps that can be taken to sustain the blockade for months if necessary while minimizing the impact on American consumers.”
