Tehran, May 01 (V7N)- Global crude oil markets witnessed a sharp surge on Thursday as tensions escalated between the United States and Iran over the strategic Strait of Hormuz. The price of international benchmark Brent crude oil jumped more than 7 percent, reaching around $126 per barrel—its highest level in four years—before easing slightly later in the day.

The spike comes amid Washington’s plan to extend its naval blockade in the region and Tehran’s renewed threats of retaliation. The United States is also reportedly working to form an international coalition to ensure safe and uninterrupted shipping through the vital waterway, which handles a significant portion of the world’s oil supply.

According to analysts, the growing risk of prolonged conflict is driving investor uncertainty. Jim Reed, Managing Director at Deutsche Bank, noted that markets are now factoring in the possibility of sustained geopolitical instability, which is pushing prices higher.

The latest volatility follows reports that United States Central Command chief Admiral Brad Cooper is set to brief Donald Trump on potential new military actions. At the same time, the US is awaiting a revised proposal from Iran regarding ongoing tensions.

Adding to the uncertainty, Iran’s Supreme Leader Mojtaba Khamenei issued a stark warning, declaring that “a new chapter” is beginning in the Strait of Hormuz. While he did not elaborate, he emphasized Iran’s intent to maintain control over the waterway and continue its nuclear and missile programs.

Experts suggest that Iran may use its strategic position in the strait as leverage in negotiations, while the US pushes forward with efforts to counterbalance Tehran’s influence.

As geopolitical tensions mount, central banks worldwide are increasingly cautious, with many signaling slower policy moves in May due to rising inflation risks linked to surging energy prices.

The evolving situation continues to keep global markets on edge, with energy supply chains and economic stability hanging in the balance.

END/SMA/AJ