Washington: Brent crude oil futures soared by 8% to reach $120 per barrel, marking their highest level since June 2022. This increase is attributed to market reactions to the continued blockade on Iran by the United States, which has heightened concerns over prolonged disruptions in energy flows through the crucial Strait of Hormuz.

According to Anadolu Agency, the surge followed a statement from US President Donald Trump, asserting that Washington would maintain its naval blockade on Iran until Tehran agrees to a nuclear deal. This decision has intensified fears about the long-term stability of oil transit routes that are vital to global energy supply.

President Trump, in a conversation with Axios, revealed his rejection of a proposal from Tehran to reopen the Strait of Hormuz. He emphasized the blockade's effectiveness as a strategic measure over Iran's nuclear ambitions, suggesting it is more impactful than military action. Trump remarked that the blockade is exerting significant pressure on Iran, leading to critical infrastructure challenges.

Trump further stated that Tehran is eager for an agreement to lift the US blockade, as Iran's restricted oil export capabilities have severely strained its infrastructure. Additionally, he noted that the US is aware of Iran's recent military equipment movements during the ceasefire and warned of swift retaliation if hostilities reignite.

While the blockade remains a key pressure tactic, Axios reported that the US Central Command has contingency plans for a focused aerial strike campaign should diplomatic efforts fail. However, Trump has not authorized any military action at this time.

Compounding the situation, the United Arab Emirates' decision to exit OPEC and OPEC+ has added to the volatility in oil markets, creating uncertainty around the coordination within the producer group. Concurrently, US inventory data indicated significant reductions in crude and fuel stockpiles, with crude exports hitting a record high, further tightening global supply conditions.