Thursday 30 April 2026 8:31 am
Oil prices rocketed to a wartime high on Thursday morning after reports that US President Donald Trump is set to receive a briefing on new military operations in Iran, raising fears over an end to the fragile ceasefire between the two nations.
Brent Surges Past $126
Brent crude, the global benchmark, surged as much as 7.1% in early trading, breaching $126 per barrel. West Texas Intermediate also jumped above $110. This marks the highest price since the war began on 28 February, though prices have since eased slightly to $122.8.
Markets Spooked by Military Briefing
The surge came after markets were spooked by reports that the US head of Central Command is to brief Trump later today, signalling a potential restart of combat operations. A ceasefire has been in place since early April, but negotiations have ground to a halt after both sides refused to relinquish control of the Strait of Hormuz. Talks scheduled for the weekend in Pakistan also failed to materialise after Trump cancelled a trip by his envoys.
Central Command has also requested hypersonic missiles be sent to the Middle East, which would mark the first time the US army has deployed these weapons.
Trump Vows to Maintain Blockade
Trump has signalled he is willing to maintain the US Navy blockade of Iranian ports for as long as it takes, with Iran responding by keeping the waterway shut to oil tankers, choking global supply. On Wednesday, Trump warned that Iran “better get smart soon,” and in a meeting with oil executives discussed steps to “continue the current blockade for months if needed,” according to a White House official.
US officials are banking that the blockade will force Iran to cap its oil wells and shut down production once its oil facilities are filled.
Impasse Woes
Trump said: “The blockade is somewhat more effective than bombing. They are choking like a stuffed pig.” The blockades have reduced daily passages through the Strait of Hormuz to nearly zero, with the International Energy Agency calling the conflict the biggest supply shock in history.
But Trump confirmed he would not lift the blockade until he secures a nuclear deal with Tehran, which Iran has given no indication of doing. The US is now also seeking the forfeiture of two Iran-linked oil tankers seized by naval forces, representing an economic escalation.
Economic Fallout
Oxford Economics warned that a six-month impasse in the waterway could send oil prices rocketing to a staggering $190 by August, while other analysts have warned of a potential global recession.
