Oil soars
past US$126 to new high on report US considering military options against Iran
Brent
crude, the global oil benchmark, surged 5.4 per cent to US$124.40 a barrel as
at 12pm Singapore time, after jumping more than 6 per cent the previous day.
Published
Apr 30, 2026, 12:22 PM
Updated
Apr 30, 2026, 01:09 PM
SINGAPORE
– Oil prices hit a new high on April 30 following a report that the US military
would brief President Donald Trump on potential action against Iran, after he
signalled no let-up in the naval blockade of the country.
Brent
crude, the global oil benchmark, surged 6.9 per cent to US$126.20 a barrel as
at 12.19pm Singapore time, after jumping more than 6 per cent to the highest
level since June 2022 on April 29. The US benchmark, West Texas Intermediate,
rose 3.1 per cent to US$110.23.
Mr Trump
told Axios he will not lift a naval blockade until he secures a nuclear deal
with Iran, while the news site separately reported that US Central Command will
brief the President on April 30 on potential military plans.
The US is
expanding its pressure on Tehran by seeking the forfeiture of two Iran-linked
oil tankers that were seized by naval forces enforcing the blockade, as
American authorities try to squeeze buyers of Iranian crude. The US military
has also asked for hypersonic missiles to be sent to the Middle East, which
would mark the first time the country deployed those weapons.
The
Strait of Hormuz has been effectively closed since the war started at the end
of February, choking off flows of crude, natural gas and oil products, and
driving up energy prices. On April 28, Mr Trump discussed steps the US could
take to prolong its blockade while minimising the impact on American consumers
at a meeting with oil and trading executives, the White House said.
Iranian
officials remain defiant. Mr Mohsen Rezaee, military adviser to the Supreme
Leader, vowed the nation will respond if the US blockade continues, according
to state TV.
Parliament
Speaker Mohammad Bagher Ghalibaf accused Mr Trump of seeking to force Tehran to
surrender through economic pressure and internal divisions, Tasnim news agency
reported.
Mr Robert
Rennie, head of commodity research at Westpac Banking, said: “Trump has ripped
away the security blanket the market was clinging to – the hope that the war
was about to end.
“Traders
are now being forced to confront a much uglier reality: Both sides still think
they are winning, neither side has a clear incentive to negotiate, and energy
prices are starting to accelerate higher.”
Blockades
of the Strait of Hormuz by the US and Iran have reduced daily transits to near
zero.
The
International Energy Agency called the conflict in the Middle East the biggest
supply shock in history, and Vitol Group said the market is facing a supply
loss of around one billion barrels.
The US
has turned away dozens of ships since the start of its blockade on April 13.
Confiscating oil cargoes aboard Iran-linked tankers would represent an
escalation of Mr Trump’s economic offensive – and dovetail with Washington’s
strategy towards Venezuelan crude after the ouster of President Nicolás Maduro.
The Trump
administration is now asking other countries to join an international coalition
that would enable ships to navigate the Strait of Hormuz, according to a report
from the Wall Street Journal. It cited an internal State Department cable sent
to US embassies on April 28.
US crude
exports surged to a record last week as global buyers tapped American producers
to replace lost supply from the Middle East. Overseas shipments rose above six
million barrels a day, eclipsing a previous high of nearly 5.3 million set in
late 2023.
“It feels
like a day of reckoning,” said Ms Rebecca Babin, a senior energy trader at CIBC
Private Wealth Group, referring to the price gains on April 29.
“The
paper market is catching up to the physical, which has already started to
reflect tighter balances and delayed flows.” BLOOMBERG
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