Oil prices recorded a sharp increase on Wednesday evening, as Brent crude exceeded the $120 per barrel level for the first time since June 17, 2022, according to trading data at the ICE exchange in London.
According to the data, Brent futures for July 2026 delivery rose by 7.88% to reach $120.03 per barrel, before paring gains slightly to $119.95 (+7.81%) minutes later. In the same context, West Texas Intermediate (WTI) crude for June 2026 delivery climbed by 8.15% to reach $108.07 per barrel.
This strong increase reflects a tense situation in the global energy markets, amid concerns over supply disruptions and escalating geopolitical crises, driving prices to unprecedented levels in more than two years.
The rise in oil prices was driven by escalating geopolitical tensions in the Middle East, especially after U.S. President Donald Trump rejected an Iranian proposal to open the Strait of Hormuz and lift the blockade in exchange for delaying nuclear negotiations, which increased uncertainty in the markets.
Concerns about disrupted energy supplies also contributed to price increases, in the face of repeated threats to navigation through the strait, through which about 20% of the world's oil passes. This is compounded by the ongoing war and escalation between the United States and Israel on one side and Iran on the other, along with diplomatic stalemates and the potential collapse of the cease-fire, which boosted supply shortage forecasts and pushed prices higher.
Fears of extending pressure on Iran by Donald Trump also intensified market anxieties, amid possibilities of exacerbating supply disturbances.
On the other hand, direct market factors also supported the price increases, most notably the faster-than-expected decline in U.S. crude oil and fuel inventories, alongside decreased imports and increased refinery consumption<>, reflecting a shortage in supply. Additionally, the announcement by the United Arab Emirates to exit OPEC added an element of uncertainty regarding market balance and the organization's role, although the critical factor remained linked to supply developments in the Gulf region.
