Brent crude soars past $126 as U.S. military to brief Trump on action against Iran

Key Points:

• Brent crude oil prices surged to a four-year high, reaching $126.10 per barrel, driven by reports that the U.S. military would brief President Trump on potential military action against Iran amid ongoing tensions and a U.S. naval blockade of Iranian exports.
• The U.S. Central Command is reportedly preparing plans for possible military action against Iran, while President Trump rejected Tehran's proposal to reopen the Strait of Hormuz, maintaining the blockade until a broader nuclear agreement is achieved.
• Supply disruptions are intensifying as exports through the Strait of Hormuz have plummeted to just 4% of normal levels, with Goldman Sachs warning that constrained Iranian exports and limited storage could worsen the situation, despite gradual output increases from the UAE.
• Market analysts note that oil prices are influenced by a combination of physical supply disruptions, geopolitical tensions, and investor sentiment, with potential for prices to spike to $140–$150 per barrel if the conflict and blockade continue.
• Despite high prices, Goldman Sachs highlights emerging demand risks, particularly in jet fuel and petrochemical sectors, which may reduce global oil consumption by about 3.6 million barrels per day compared to February levels.