Why did Brent crude oil prices surge above $120/barrel on Thursday, and what immediate geopolitical action triggered this spike?

Brent crude prices surged above $120/barrel on Thursday due to escalating tensions over the Strait of Hormuz, after US President Donald Trump rejected Iran’s latest proposal to reopen shipping lanes and signaled further naval blockade measures. The article states: 'Brent crude briefly crossed $120/barrel, as US President Donald Trump appeared to instruct further naval blockade on the Strait of Hormuz after rejecting Iran’s latest proposal to reopen shipping lanes.' It adds that the strait—through which about 20% of global oil and gas flows—'remains effectively closed,' with Iran barring access for all 'non-friendly' ships while the US naval blockade has been in place since 13 April, targeting vessels sailing to and from Iranian ports.

What are the stated positions of the US and Iran regarding negotiations, and how has this impasse affected the Strait of Hormuz?

The US insists Iran must abandon its nuclear ambitions as a precondition for ending the conflict, while Iran seeks to defer nuclear talks until shipping disputes are resolved—a proposal the US rejected. As stated in the article: 'Trump insisted that Iran must give up its nuclear ambitions as part of a deal to end the conflict... The Wall Street Journal (WSJ) reported earlier that the US plans to extend its naval blockade on the Strait of Hormuz, as Trump remains unhappy with Iran’s latest proposal to defer nuclear talks until shipping disputes are resolved.' Consequently, the Strait of Hormuz 'remains effectively closed,' with Iran enforcing restrictions on 'non-friendly' ships and the US maintaining a naval blockade since 13 April, directly disrupting global energy flows.

Brent crude tops $120/bbl as US, Iran disagree over Hormuz blockade

Apr 30, 2026

Brent crude prices spiked above $120 per barrel following US-Iran disagreements over a Strait of Hormuz blockade. The Asian Development Bank warns these supply disruptions could significantly downgrade regional economic growth and increase inflation.

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