Oil Prices Surge Above $120 Amid Rising US–Iran Conflict Tensions

Global oil markets surged sharply on Thursday, with Brent crude climbing to a four-year high as fears intensify over a possible escalation in the ongoing United States–Iran conflict.

Brent futures rose above $120 per barrel, peaking between $122 and $125 in some sessions, marking the highest levels since 2022, as geopolitical uncertainty rattled investors and disrupted supply expectations.

The rally comes amid stalled diplomatic efforts and rising speculation of renewed military action. Reports indicate that the United States is considering further strikes on Iran, while Tehran continues to exert control over the Strait of Hormuz, a critical global oil transit route.

The strategic waterway, which handles a significant share of the world’s oil shipments, has seen reduced tanker traffic since the conflict escalated earlier this year. This has triggered what analysts describe as one of the most severe energy supply disruptions in recent history.

Oil prices have surged by over 40% since the conflict began in February, reflecting tightening global supply and heightened risk premiums.

The impact is already rippling across global markets. Asian stocks declined, bond yields climbed, and currencies such as the Japanese yen weakened as investors reacted to rising inflation risks driven by higher energy costs.

Meanwhile, fuel prices in major economies are climbing, raising concerns about broader economic fallout, including increased transportation costs and inflationary pressure on essential goods.

Analysts warn that unless tensions ease or supply routes reopen, oil prices could remain elevated in the near term, with demand destruction rather than increased production seen as the only potential stabilizing factor.