Oil prices have hit a four-year wartime high above $126 a barrel. barrel overnight before staging a forceful retreat.
This sent shockwaves through the market as US President Donald Trump vowed to maintain a naval blockade of Iranian ports.
On Thursday, April 30, Brent crude reached $126.41 before pulling back to around $115.98.
West Texas Intermediate crude was near $106. Such is the nature of such volatility in a market that has nearly doubled since the start of the US-orchestrated war with Iran on February 28.
The president has made it clear that the closure of the Strait of Hormuz, through which about 20% of the world’s oil flows, will continue. The volume flowing through this vital artery has dropped to just 4%. The president called on Iran to “smarten up soon” in his Truth Social statement, while news reports suggested an Iranian proposal to reopen the chokepoint had been rejected.
According to the American Automobile Association (AAA), the national average price of gasoline hit 4.23 per gallon on Wednesday, April 29.
Fluctuating prices also weighed heavily on global energy markets, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng each falling around 1% as investors braced for a potential hit to economic growth.
