Oil prices surged more than five percent to a four-year high Thursday after Donald Trump signaled the US naval blockade of Iranian ports could last months. Trump told national security officials to prepare for a prolonged blockade aimed at forcing Iran to abandon its nuclear programme. He also told Axios the blockade was more effective than airstrikes, adding it would not end until a deal was reached. Iran submitted a new proposal this week to reopen the Strait of Hormuz, but Trump reportedly dismissed it as bad-faith negotiating. The Strait of Hormuz carries roughly a fifth of global oil and gas supply. Brent crude for June delivery jumped 6.8 percent to $126, while West Texas Intermediate rose three percent past $110, the highest levels since Russia invaded Ukraine in 2022. Analysts say traders are now pricing in a longer crisis than initially assumed. Stock markets fell across Tokyo, Hong Kong, Mumbai, Sydney, Seoul, Bangkok, Manila, and Jakarta. The dollar gained on safe-haven demand. The AI trade provided some offset: Samsung Electronics reported a 750 percent surge in operating profit driven by chip demand, following strong earnings from Microsoft, Meta, and Alphabet. The Federal Reserve held rates, citing inflation risk from rising energy costs, though four members dissented, the most since 1992. It was Jerome Powell's final meeting; Kevin Warsh is set to take over next month.
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.
