Global oil prices pulled back sharply after hitting a four-year high on Thursday, with Brent crude touching $126.41 a barrel before falling more than three dollars to $114.07 by midday New York time. The intraday peak was the highest since March 2022. WTI crude also surged to $110.93 before retreating to $104.52. The spike is driven by fears that the US-Iran war, which began in late February, could cut off a significant chunk of Middle East oil supply for months. Both Brent and WTI are still on course for a fourth straight month of gains, reflecting how deeply supply-risk anxiety is embedded in the market. The afternoon pullback had no clear trigger. PVM analyst Tamas Varga said the drop reflected the same volatility that has defined the market since the Iran conflict started, rather than any specific news. LSEG data showed two large sell orders for the expiring June Brent contract traded earlier in the session, and analysts noted that price swings often intensify near contract expiry. With the June Brent contract expiring Thursday, the more actively traded July contract settled around $109.98, giving a clearer read on where the market expects prices to hold.
Qatar's foreign ministry said mediators including Qatar, Pakistan, and Oman have reached "very progressive stages" in efforts to end the US-Iran war, pushing Brent crude down more than four percent.
Qatar confirmed it is mediating between the US and Iran but said no direct talks are currently planned. The clarification follows conflicting statements from President Trump, who claimed talks are under way, and Tehran, which denied any dialogue is happening.
Saudi Aramco reported sharply higher second-quarter 2026 profits as the Iran war restricts global oil supply and pushes crude prices up. Other oil supermajors also posted outsized earnings, raising concerns about sustained fuel cost pressure for importing economies.
President Trump called current Iran negotiations the "last chance" to end five months of conflict, pushing oil prices higher. Tehran denied formal talks are taking place, raising the risk of a diplomatic breakdown with direct consequences for global energy markets.
