Oil price tops $120 a barrel after Trump warns Iran blockade could last ‘months’
Summary
The price of Brent crude oil rose above $126 a barrel, the highest since 2022, after President Donald Trump said the US blockade of Iranian ports might last for months. This increase reflects tensions between the US and Iran, with stalled peace talks and disruptions to oil supplies through the Strait of Hormuz.Key Facts
- Brent crude oil price jumped over 13% in 24 hours, reaching above $126 a barrel.
- This is the highest oil price seen since Russia’s invasion of Ukraine in 2022.
- President Trump indicated the US naval blockade on Iranian ports could continue for months.
- Iran has responded by almost shutting the Strait of Hormuz, a key route for global oil shipments.
- The blockade aims to limit Iran’s oil exports and force it to stop production by filling its storage.
- Oil supply cuts through the strait reduce global daily supplies by nearly 20 million barrels.
- Experts warn that a long blockade could push oil prices as high as $190 per barrel by August.
- Rising oil prices are causing inflation increases and raising concerns about a potential global recession.
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