Brent crude tops $120 as Hormuz blockade tightens 2026

What moved oil markets overnight

Global oil prices surged to their highest levels since 2022 after Brent crude pushed past $120 a barrel on Thursday and briefly touched $122. US benchmark West Texas Intermediate (WTI) traded around $107. The move extended a multi-day rally driven by fears that a prolonged disruption could tighten physical supply. The price action followed strong gains in the prior session, with Brent up nearly 6% and WTI up 7%. Markets also tracked rising geopolitical risk as talks aimed at ending the US conflict with Iran remained deadlocked.

Trump’s blockade stance and the negotiating deadlock

The latest rally was closely tied to comments from US President Donald Trump that the naval blockade linked to Iran would continue until Tehran agrees to a nuclear deal. In an interview with Axios on Wednesday, Trump described the blockade as his primary tool to pressure Iran. He said the blockade would not be lifted before Iran addresses US concerns, rejecting Iran’s proposal to reopen the Strait of Hormuz before negotiations begin. Trump also indicated military options remain available, without providing details. The White House separately said Trump discussed steps to prolong the blockade while minimising the impact on American consumers at a meeting with oil and trading executives.

Strait of Hormuz disruption and why it matters

The Strait of Hormuz is a key corridor for global energy shipments and typically carries about one-fifth of the world’s oil and LNG supply, according to the information cited in the reports. Shipping through the strait has been effectively choked since US and Israeli air strikes on Iran began on February 28. Iran has largely restricted shipping through the strait, allowing only its own vessels, while the US has stepped up actions against Iranian-linked shipping. Reports also said the US has turned away dozens of ships since the start of its blockade on April 13. Even where some vessels reportedly crossed blockade lines, overall flows remained heavily constrained.

How the price spike built over several sessions

Thursday’s jump came on top of a strong Wednesday close, when Brent climbed more than 6% to its highest level since June 2022. In another snapshot, Brent was reported to have risen over 7% to about $119.20, while WTI rose 6.61% to about $106.58. The market also saw contract-specific moves, with thin trading volume in Brent’s June contract, which was set to expire at the end of the session. The more active July Brent contract advanced above $111 after also closing at the highest since June 2022.

Supply-side counterweights: OPEC+ and constrained transits

On the supply side, OPEC+ was expected to approve a modest output increase of around 188,000 barrels per day at its upcoming meeting, according to the report text. However, the market reaction suggested that traders viewed the Hormuz disruption as the dominant driver. One excerpt said blockades of the Strait of Hormuz by the US and Iran reduced daily transits to near zero. With the corridor central to energy flows, the risk premium in crude prices rose even as incremental OPEC+ supply was discussed.

What officials and stakeholders have said

Iranian officials signalled defiance in comments carried by state-linked outlets cited in the provided text. Mohsen Rezaee, described as a military adviser to the Supreme Leader, said Iran would respond if the US blockade continues, according to state TV. Parliament Speaker Mohammad Bagher Ghalibaf was cited by Tasnim as accusing Trump of trying to force Tehran to surrender through economic pressure and internal divisions. Trump, for his part, reiterated that the blockade would remain until a deal is secured, and described the economic pressure as more effective than bombing in remarks to Axios.

Key numbers at a glance

Timeline of escalation and market reaction

Why this matters for markets and inflation risk

The reports described the disruption as one of the most severe global energy shocks in recent years, with traders focused on the possibility of prolonged constraints through a critical energy chokepoint. Higher crude prices can spill into broader inflation expectations, especially when the move is driven by supply risk rather than demand strength. One excerpt noted that markets were watching whether prolonged disruption could further tighten supply and push prices higher. Another cited ING analysts warning that markets may be underpricing the ongoing disruption. The tone across the coverage was that oil’s risk premium is being driven by the physical nature of the blockade and reduced transits.

What to watch next

Investors are likely to track three near-term signals highlighted across the reports: any change in the US position on lifting or modifying the blockade, Iran’s response and any operational change in transits, and the forthcoming OPEC+ decision on the expected 188,000 barrels per day increase. Market participants will also watch how contracts behave around expiries, given references to thin volumes in Brent’s June contract. Any verified reopening steps for the Strait of Hormuz, or confirmed diplomatic progress on nuclear talks, would be central to near-term pricing. Until then, the reporting suggests oil markets remain highly sensitive to incremental news flow around enforcement and shipping access.