Oil prices rose to a four-year wartime high above $126 a barrel overnight before experiencing a sharp decline.
This sent shockwaves through the market when US President Donald Trump pledged to maintain a naval blockade of Iranian ports.
On Thursday, April 30, Brent crude touched $126.41 before returning to around $115.98.
West Texas Intermediate crude was near $106. Such is the nature of this volatility in a market that has almost doubled since the start of the US-orchestrated war against Iran on February 28.
The president made clear that the closure of the Strait of Hormuz, through which about 20% of the world’s oil passes, would continue. The volume flowing through this vital artery has fallen to just 4%. The president called on Iran to “get smart soon” in his Truth Social statement, while media reports suggested an Iranian proposal to reopen the chokepoint had been rejected.
According to the American Automobile Association (AAA), the national average price of gasoline reached 4.23 per gallon on Wednesday, April 29.
Price swings also significantly affected global energy markets, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng each falling around 1%, as investors braced for a potential impact on economic growth.
