Oil prices surged more than 7 percent on Thursday, hitting a four-year high, while global stocks tumbled after Donald Trump warned that the U.S. blockade of Iranian ports could last for months. A report also indicated that the United States is considering new military action against Iran to break the deadlock in negotiations aimed at ending the war, further fueling fears of increased disruption to Middle East supplies.
The Wall Street Journal reported that Trump had instructed national security officials to prepare for a prolonged blockade to force Iran to abandon its nuclear program.
Price update :
Brent crude for June delivery rose 7.1 percent to $126.41 a barrel early Thursday, after gaining 6.1 percent in the previous session. The June contract, which is rising for the ninth consecutive day, expires on Thursday. The more actively traded July contract was at $113.85, up 3.1 percent, after gaining 5.8 percent in the previous session.
Before the war began in late February, Brent crude was trading at around $70 a barrel.
U.S. West Texas Intermediate (WTI) crude futures for June delivery climbed 3.4 percent to $110.31 a barrel, after rising 7 percent in the previous session, according to Reuters data.
Both benchmarks are on track for their fourth consecutive monthly gain.
Analysts said traders are beginning to believe the crisis will not be as short-lived as initially feared.
