Brent crude oil surged to $119 per barrel on Wednesday evening — the highest level recorded this month — as markets reacted to reports that President Donald Trump had instructed aides to prepare an extended blockade of Iran‘s ports, deepening fears of a prolonged disruption to global energy supplies.
The benchmark price climbed nearly 7% in a single trading session, a dramatic single-day move that rattled equity markets across Europe. The FTSE 100 closed down 1.2%, while the pan-European Stoxx index fell 0.7%. France’s CAC shed 0.39% and Germany’s DAX dropped 0.27% by the close of trading.
The catalyst for the spike was a report that Trump had ordered preparations to extend the ongoing naval blockade of Iranian ports, a measure the United States announced after its forces began intercepting or turning back vessels travelling to or from Iran. Tehran responded defiantly, vowing to continue disrupting maritime traffic through the Strait of Hormuz — the narrow waterway that ordinarily carries approximately one-fifth of the world’s oil and liquefied natural gas supply.
The strait has been effectively closed for weeks. Iran severely restricted shipping through the passage after US and Israeli strikes began on 28 February, and earlier this month Tehran warned that any vessel approaching the strait would be targeted. At least four vessels tracked from Iranian ports appear to have crossed the US blockade line, according to analysis of shipping data.
On Wednesday, Trump intensified his public pressure on Tehran, urging Iran to ‘get smart soon’ and reach a negotiated settlement. In a post on Truth Social, he wrote that Iran ‘couldn’t get its act together,’ signalling mounting frustration after days of deadlock in conflict resolution efforts.
The diplomatic and military standoff has already inflicted severe economic damage on Iran. The country’s annual inflation rate has climbed to 53.7%, according to the Statistical Center of Iran, while the rial has fallen to a record low against major currencies. The Iranian government has acknowledged that approximately two million Iranians have lost their jobs, directly or indirectly, as a consequence of the war.
The energy crisis is also commanding attention at the highest levels of the US government. On Tuesday, Chevron chief executive Mike Wirth and other senior energy executives met with Trump at the White House to discuss how to limit the conflict’s impact on American consumers, as fuel costs continue to rise domestically.
The trajectory of oil prices over recent weeks illustrates just how volatile the situation has become. Brent crude fell sharply to $90 per barrel on 17 April following the announcement of a ceasefire between Israel and Lebanon, offering a brief moment of relief. The US also paused its attacks on Iran on 8 April. However, prices have climbed steadily over the past 12 days as the blockade continued and diplomatic progress stalled.
The longer-term economic outlook is equally alarming. The World Bank forecast on Tuesday that global energy prices could surge by as much as 24% in 2026 if the most acute disruptions caused by the Iran conflict persist through May — a scenario that would compound inflationary pressures already being felt across multiple economies. In Australia, headline inflation has already surged to 4.6%, with higher fuel prices cited as a primary driver.
The crisis underscores the extraordinary strategic importance of the Strait of Hormuz. The waterway, flanked by Iran to the north and the Arabian Peninsula to the south, serves as the sole maritime exit point for oil exports from Saudi Arabia, the UAE, Kuwait, and Iraq. Its effective closure for weeks represents one of the most significant disruptions to global energy infrastructure in decades.
With Trump publicly threatening further military options and Iran showing no sign of backing down, traders and policymakers alike are bracing for the possibility that the current disruption could extend well beyond initial expectations — and that the $119 per barrel figure recorded Wednesday may not represent the ceiling.
