ANNIE ALLEN (UK Bureau Chief)
Global oil prices surged to a four-year high before pulling back sharply on Thursday, as fears of a widening conflict between the United States and Iran sent shockwaves through energy markets.
Brent crude briefly spiked above $126 per barrel, its highest level since March 2022, amid growing concern that an escalation in tensions could disrupt Middle East oil supplies and threaten global economic stability.
The rally was fuelled by reports that U.S. President Donald Trump was set to receive a briefing on potential military strikes against Iran, raising the stakes in an already volatile geopolitical standoff.
But the surge proved short-lived. Prices quickly retreated, with Brent crude falling by about 1.7% to $115.98 per barrel, highlighting the extreme swings now gripping the market. The more active July contract also slipped to around $109.93.
Traders pointed to a combination of profit-taking and sudden market repositioning, with large sell orders hitting the market during early trading.
Analysts say the volatility reflects deep uncertainty over how the conflict could unfold and how severely it might impact global oil supply.
“The market is extremely unpredictable right now,” said Tamas Varga of oil broker PVM, noting that price swings have become more erratic since tensions escalated in late February.
At the heart of the turbulence is a growing fear: that a prolonged U.S.-Iran conflict could choke oil flows from one of the world’s most critical energy regions.
For now, the market remains on edge. Oil is no longer just trading on supply and demand. It is trading on geopolitics. And with tensions rising, volatility may be the only certainty.
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