Brent Crude Jumps 4.8%, Breaks Above $126 for First Time Since June 2022

International oil prices surged as military tensions in the Middle East escalated again.

Brent crude futures for June delivery on ICE Futures Europe rose 4.81% from the previous session to $123.71 a barrel as of 2 p.m. Korea time on April 30. Prices climbed as high as $126.41 intraday, the highest level since June 2022.

At the same time, June West Texas Intermediate futures on the New York Mercantile Exchange rose 2.69% to $109.75 a barrel. They touched $110.93 earlier in the session, briefly topping $110. Brent and WTI had already jumped 6.1% and 6.95%, respectively, a day earlier.

The immediate driver behind the rally was the possibility that the U.S. could revisit military options. Axios reported that Gen. Brad Cooper, head of U.S. Central Command, was scheduled to meet President Donald Trump on April 30, a sign that a resumption of military operations was under serious consideration.

Concern is also growing that high oil prices could persist. A day after reports said Trump had instructed aides to pursue a prolonged maritime blockade to pressure Iran to abandon its nuclear program, further reports said he met with oil and trading industry executives to discuss ways to limit the impact on the U.S. if the blockade is extended.

Iran has maintained a hard-line stance. Press TV, Iran's state-run broadcaster, reported on April 29, citing a senior Iranian security source, that a firm response would be unavoidable if the U.S. continued what it called an illegal maritime blockade near the Strait of Hormuz. The source added that Tehran's patience had reached its limit.

Diplomatic talks between Washington and Tehran are at a standstill. After Iran blocked the Strait of Hormuz, a key route for global energy shipments, the U.S. responded with a maritime blockade restricting the passage of Iran-linked vessels through the strait. A second round of ceasefire talks also collapsed, further straining relations between the two countries.

Robert Rennie, head of commodity research at Westpac Banking Corp., told Bloomberg that Trump had shattered the market's safety net: the hope that the war would end soon. Traders are now confronting a harsher reality. Both sides believe they are winning, neither has a clear incentive to negotiate, and energy prices are accelerating higher.

Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com