Brent Oil Surges Above $123 Amid Reports of Possible U.S. Military Action on Iran

Global oil markets rallied sharply on Thursday, with Brent crude rising above $123 per barrel following reports that the United States is weighing military options against Iran. The development has heightened fears of further supply disruptions in the Middle East, a region already grappling with constrained exports due to ongoing geopolitical tensions.

Brent crude futures for June delivery jumped by $6.81, representing a 5.8% increase to $124.84 per barrel as of early trading hours. The benchmark had already gained over 6% in the previous session, extending its rally to a ninth consecutive day. Meanwhile, the more actively traded July contract climbed to $113.78, reflecting sustained bullish sentiment across the market.

In the United States, West Texas Intermediate (WTI) crude also recorded notable gains. June futures rose by $2.76, or 2.6%, to $109.64 per barrel after a strong 7% increase in the previous session. The U.S. benchmark has now advanced in eight of the last nine trading sessions, underscoring growing investor concerns about tightening global supply.

Both oil benchmarks are now on track to post their fourth straight month of gains. Since the beginning of the year, Brent crude prices have more than doubled, reaching their highest level since March 2022. Similarly, WTI has surged by over 90%, reflecting a combination of geopolitical risks, supply constraints, and resilient global demand.

Market sentiment was further shaken by reports that U.S. President Donald Trump is expected to receive a briefing on potential military strikes targeting Iran. The move is reportedly aimed at pressuring Tehran back into negotiations over its nuclear programme, raising the stakes in an already fragile geopolitical landscape and adding fresh volatility to global energy markets.

source: Business day