Oil prices have reached a four-year wartime high above $126 a barrel overnight before staging a sharp retreat.
This sent shockwaves through the market as U.S. President Donald Trump vowed to maintain a naval blockade of Iranian ports.
On Thursday, April 30, Brent crude touched $126.41 before pulling back to around $115.98.
West Texas Intermediate crude was close to $106. Such is the nature of such volatility in a market that has nearly doubled since the start of the U.S.-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 dwindled to a mere 4%. The President called on Iran to “get smart soon” in his Truth Social statement, while news reports suggested that an Iranian proposal for reopening 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.
The fluctuating prices also significantly affected global energy markets, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng each falling about 1% as investors braced for a potential hit to economic growth.
