Oil prices hit a four-year wartime high above $126 a barrel overnight before suffering a sharp drop.
This sent shockwaves through the market when US President Donald Trump vowed to maintain a naval blockade of Iranian ports.
On Thursday, April 30, Brent crude oil touched $126.41 before retreating to around $115.98.
West Texas Intermediate crude was near $106. Such is the nature of such volatility in a market that has nearly doubled since the start of the US-orchestrated war against Iran on February 28.
The President has made it clear that the closure of the Strait of Hormuz, through which around 20% of the world’s oil passes, will continue. The volume flowing through this vital artery has been reduced to just 4%. The President called on Iran to “get smart soon” in his Social Truth statement, while news reports suggested that an Iranian proposal to reopen the chokepoint had been rejected.
According to the American Automobile Association (AAA), the national average price of gasoline reached 4.23 per gallon on Wednesday, April 29.
The price fluctuation also significantly affected global energy markets, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng each falling about 1% as investors braced for a possible hit to economic growth.
