Brent crude jumps above $126 to reach the highest level since March 2022 | economy

Oil prices jumped on Thursday after a report stated that the United States was considering the possibility of taking new military action against Iran to break the deadlock in negotiations aimed at ending the war, which exacerbated fears of further disruptions to supplies in the Middle East.

Brent crude futures for June delivery rose $8 to $126.09 in morning trading, the highest level since March 2022, before trimming part of its gains.

Brent recorded gains of 6.1% in the previous session.

The June contract, which is rising for the ninth day in a row, expires today, Thursday.

The price of the most traded July contract reached $113.3, an increase of 2.6% – at the time of writing the report – after recording a gain of 5.8% in the previous session.

US West Texas Intermediate crude futures for June rose 2.3% to $109.30 a barrel, after recording a 7% rise in the previous session.

The two indices are heading for gains for the fourth month in a row.

According to a report published by Axios late on Wednesday evening, US President Donald Trump is scheduled to receive a briefing on Thursday about plans to launch a series of military strikes on Iran in the hopes of…
To return to negotiations on its nuclear program.

Alleviating the effects of the blockade on prices

A White House official said yesterday, Wednesday, that Trump spoke with oil companies about how to mitigate the impact of the American blockade of Iranian ports if it continues for months, which raised fears in the market of disruption.
Oil supply for a long time.

The meeting with oil companies came after efforts to end the war – which led to the largest disruption to the world’s energy supplies ever – reached a dead end.

“The prospects for reaching a resolution to the Iran conflict soon or reopening the Strait of Hormuz remain slim,” IG market analyst Tony Sycamore said in a note.

In terms of supplies, sources told Reuters that the OPEC+ alliance would agree on Sunday on a slight increase in oil production quotas by about 188,000 barrels per day.

The meeting comes directly after the UAE’s withdrawal from OPEC.

Although the UAE’s exit will allow it to increase production after resuming exports, analysts say that this is unlikely to affect market fundamentals this year, especially with the closure of the Strait of Hormuz and other production disruptions resulting from the war.