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Summary
- Global oil benchmark Brent hits $126.41 a barrel, highest since March 2022
- US considers possible military action to break Iran negotiation deadlock, news report says
- Oil supply disruptions persist as Strait of Hormuz remains closed
- OPEC+ to raise output quotas slightly; UAE exit seen as limited near-term market impact
(Reuters) – Global oil prices retreated after hitting a four-year high of more than $126 a barrel on Thursday on concerns that the U.S.-Iran war could worsen and lead to a protracted Middle East oil supply disruption that could hurt global economic growth.
Earlier in the day, the market moved higher after Axios, citing unidentified sources, reported late on Wednesday that U.S. President Donald Trump is slated to receive a briefing on Thursday on plans for a series of military strikes on Iran in hopes it will return to negotiations on its nuclear programme.
Prices later dropped without any obvious catalyst.
Tamas Varga of oil broker PVM said the decline did not look related to a specific development and reflected the heightened volatility in the market since the Iran war started on February 28.
“It just sums up the unpredictable nature of trading in a Trump world,” he said.
Global oil benchmark Brent crude futures were down $2.05, or 1.7%, to $115.98 a barrel as of 1016 GMT, after touching an intraday high of $126.41, the loftiest since March 9, 2022. The prompt contract for June delivery expires on Thursday. The more active July contract was at $109.93, down 51 cents or 0.5%.
Two large sell orders for June Brent traded shortly before 0930 GMT, traders noted and LSEG data showed.
Additional reporting by Colleen Howe, Trixie Yap and Florence Tan; Editing by Christian Schmollinger, Sharon Singleton
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