Brent crude jumps to 4 year high on Thursday

Brent crude jumped to a fresh four-year high on Thursday as fears grew that the US-Iran war could worsen and prolong Middle East supply disruptions, threatening global economic growth.

Brent crude rose $4.28, or 3.63 per cent, to $122.31 a barrel after touching $126.41 intraday, its highest since March 2022. The more active July contract traded at $112.49, up $2.05, while US West Texas Intermediate gained $1.46, or 1.37 per cent, to $108.34 a barrel, its highest since April 7.

Both benchmarks were on track for a fourth straight monthly gain, with Brent more than doubling this year and WTI up around 90 per cent, as markets focused on the closure of the Strait of Hormuz and the risk of prolonged supply shortages.

The rally came as US President Donald Trump was due to receive a briefing on possible military strikes on Iran, while talks to resolve the conflict remained deadlocked. Analysts said only demand destruction caused by persistently high prices may help ease the tight supply situation.

Attribution: Reuters