Brent Oil Reverses After Hitting Four-Year High
Global oil markets turned volatile on Thursday, with Brent crude prices slipping into negative territory after earlier surging to a four-year high. The reversal came after reports that Donald Trump is considering new military actions against Iran.
By 05:32 ET (09:32 GMT), Brent crude futures for June declined 0.9% to $117 per barrel, after reaching their highest level since March 2022. The June contract is also set to expire later in the day.
Meanwhile, West Texas Intermediate crude futures for June edged 0.4% higher to $107.25 per barrel, showing mixed performance across oil benchmarks.
Military Escalation Risks Drive Market Uncertainty
According to Axios, President Trump is expected to receive a briefing on additional military options regarding Iran. The presentation, led by U.S. Central Command chief Admiral Brad Cooper, reportedly includes several potential scenarios:
- Expanded military strikes on Iran
- Operations to reopen shipping routes in the Strait of Hormuz
- A possible special forces mission targeting Iran’s uranium stockpile
These options are being explored as diplomatic efforts between Washington and Tehran have stalled in recent weeks.
Strait of Hormuz Disruptions Fuel Oil Volatility
The ongoing conflict has entered its third month, with oil flows through the Strait of Hormuz remaining severely restricted after Iran blocked the route earlier in the crisis.
As a result, oil prices have surged in recent weeks due to supply disruptions, though heightened geopolitical risks continue to drive sharp price swings.
U.S. Seeks Global Support to Reopen Key Oil Route
A report from The Wall Street Journal indicated that the U.S. is seeking international support to form a coalition aimed at reopening the Strait of Hormuz.
However, major allies have so far shown reluctance to participate. President Trump has publicly criticized NATO members for not offering sufficient military backing during the early stages of the conflict.
UAE Exit from OPEC Adds Another Layer of Uncertainty
Oil markets briefly paused their rally after the Organization of the Petroleum Exporting Countries faced a major development: the United Arab Emirates announced plans to leave the group.
While this move could signal higher production in the future, analysts believe any immediate increase in output is unlikely due to ongoing disruptions linked to the Iran conflict.
