Brent crude hits $126.41 as Iran blockade rattles markets — Bbc World News
world news: Brent crude futures rose to $126.41 on Thursday, the June contract’s highest level since March 2022, as the Iran conflict remained unresolved and Tehran continued to block the Strait of Hormuz. By Friday at 08:08 GMT, Brent was still up 89 cents at $111.29 a barrel, after a 5 percent weekly rise.
Strait of Hormuz pressure
The price spike tracks a disruption through the Strait of Hormuz, through which one-fifth of the world’s oil and liquefied natural gas supplies move in peacetime. The United States Navy was blockading Iranian ports and exports of Iranian crude, while at least four vessels have been hijacked in the past week or two. Brent had been about $65 before the United States and Israel began strikes on Iran on February 28.
Antonio Guterres warned on Thursday that if the disruption drags on past the middle of the year, global growth is expected to fall and inflation will rise. Guterres said, “The longer this vital artery is choked, the harder it will be to reverse the damage.” He added that tens of millions more people could be pushed into poverty and extreme hunger.
Talks after April 8 ceasefire
A Pakistan-brokered ceasefire between the United States and Iran has been in place since April 8 to allow time for talks, but diplomatic efforts have hit an impasse. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Thursday evening, “Expecting to reach a result in a short time, regardless of who the mediator is, in my opinion, is not very realistic.”
Donald Trump has also sought to limit market fallout. A White House official said on Wednesday that Trump asked United States oil companies to find ways to mitigate the impact of a potentially months-long siege of Iranian ports, and the president and oil executives discussed steps to alleviate global oil markets and continue the current blockade for months if needed.
UAE warns on navigation
On Friday, Anwar Gargash wrote on X that no unilateral Iranian arrangements can be trusted or relied upon regarding freedom of navigation through the Strait of Hormuz, calling the situation “treacherous aggression.” That warning lands as traders weigh whether the ceasefire can hold long enough for talks to move beyond stalemate while the waterway stays under pressure.
