The price of Brent crude oil has exceeded $125 early this Thursday after negotiations between the United States and Iran stalled, increasing uncertainty about the reopening of the Strait of Hormuz and pushing back the possible definitive end of the war.
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On rare occasions, Brent crude has surpassed $125. In 2008, during the height of the financial crisis, it reached its record, $147. Between 2011-2012, the longest period with the price above $125 occurred (with peaks of $128), while at the start of the Russian invasion of Ukraine, the barrel was paid for weeks at $139.
This Thursday, Brent for June delivery rose 6.2%, to $125.36, and Brent for July delivery increased 3.1%, to $113.85. The benchmark U.S. crude climbed 2.3%, to $109.38 per barrel. Before the war began at the end of February, Brent traded around $70 per barrel.
No progress in negotiations
The war in Iran, now entering its ninth week, still shows no clear signs of resolution. The United States has maintained the blockade of Iranian ports while Hormuz remains closed, pushing oil prices higher.
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The reports published on Thursday about a possible escalation by U.S. President Trump cooled hopes for a quick resolution to the conflict.
U.S. futures and Asian stock markets retreated after a day without major movements on Wall Street on Wednesday. Tokyo’s Nikkei 225 fell 1.6%, to 58,967.07 points, and South Korea’s Kospi lost 1.1%, to 6,615.51 points. Hong Kong’s Hang Seng dropped 1.3%, to 25,772.50 points, and the Shanghai Composite Index advanced 0.1%, to 4,109.99 points.
China’s industrial activity in April slowed slightly, although it remained in expansion territory for the second consecutive month, despite the global impact on the energy sector caused by the war in Iran, according to an official survey. The Australian S&P/ASX 200 retreated 0.3%, to 8,665.50 points. Taiwan’s Taiex lost 0.1% and India’s Sensex fell 1.2%.
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