finance
Oil Prices Reach $126 per Barrel After Strait of Hormuz Closes
Global oil prices spiked to more than $126 per barrel, marking the highest level in four years, before retreating slightly. The surge stems from the ongoing closure of the Strait of Hormuz amid conflict with Iran. Traders warn of dwindling stockpiles and broader economic impacts on supply chains and developing nations.
Apr 30, 9:18 AM·1m read8 sources
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France 24Audio version
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Global oil prices surged past $126 per barrel overnight, reaching the highest point in four years, before retreating somewhat early Thursday as the Strait of Hormuz remains closed. The price of Brent crude oil, the international benchmark, jumped to $126 per barrel on Thursday, its highest level in four years.
Oil prices spiked to more than $126 a barrel before retreating again, reflecting ongoing market volatility linked to the blockade.
A worker delivered fuel at a United Oil gas station in Los Angeles on Thursday. Global oil prices surged to a four-year high overnight before retreating somewhat early Thursday, with the prospect of a deal to end the conflict appearing dim. Traders warn of further price jumps and significant economic pain as global stockpiles dwindle, with economies cutting consumption in response.
The Hormuz blockade exposes the fragility of global energy systems, according to Amena Bakr, head of Middle East Energy & OPEC+ Insights at Kpler in Dubai. Bakr described the broader economic repercussions as a “tsunami effect,” noting how supply chain disruptions and energy shortages ripple outward, particularly impacting import-dependent economies in Asia and vulnerable developing nations already curtailing imports.
The war against Iran is hitting consumers’ wallets hard, as reported by NBC News correspondents Yasmin Vossoughian and Emily Ngo.
The oil market is one month from a crunch point, with warnings of huge pain from reduced consumption worldwide.
