Global oil prices surged sharply on Wednesday, with Brent crude briefly climbing to $125.60 per barrel before easing to $116.50 in early Thursday trading, according to data from Oilprice.com. The benchmark still reflected significant volatility, marking a 1.47 percent drop from its peak but remaining at elevated levels. West Texas Intermediate (WTI), the US benchmark, also recorded gains, trading at $106.72 per barrel, despite a slight dip of 0.15 percent in early trading.
Sharpest Rally Since 2022
The latest rally represents one of the sharpest increases since 2022, when global oil markets were disrupted by the outbreak of the Russia-Ukraine war. Reports indicate that geopolitical tensions are driving the surge. According to the BBC, prices spiked after news that the United States military is set to brief President Donald Trump on new plans for potential action in the Iran conflict.
Strait of Hormuz Blockade
Earlier reports also suggested that Trump rejected Tehran’s proposal to reopen the Strait of Hormuz, signalling that the naval blockade could remain in place until a broader nuclear agreement is reached. This has added to supply concerns in the market.
UAE Withdraws from OPEC
Adding to market uncertainty, the United Arab Emirates (UAE) announced on April 28 that it would withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) after nearly six decades of membership. The country is also set to exit OPEC+, the wider alliance of oil-producing nations. UAE energy minister Suhail Mohamed AlMazrouei said the decision aligns with evolving policy directions in the country’s energy sector, further contributing to shifting dynamics in the global oil market.
