Brent crude reaches new four-year high, surpasses $126 a barrel

The price of North Sea Brent crude climbed to a new four-year high today. It was pushed higher by growing concerns about longer-term supply disruptions due to the conflict in the Middle East. At one point, Brent reached as high as $126.41 a barrel, its highest level since March 2022. It later gave up much of its gains.

At around 10:15 CEST, Brent was up nearly three percent, trading near $121 a barrel. US light crude West Texas Intermediate (WTI) was up just under one percent, trading close to $108 a barrel.

Since the start of this year, the price of Brent crude has more than doubled. The conflict in the Middle East, triggered by US-Israeli strikes on Iran in late February, has crippled shipping through the key Strait of Hormuz. Around one-fifth of the world's oil supplies normally pass through it.

The Wall Street Journal (WSJ), citing a cable from the US State Department, reported that the United States is seeking to form a new international coalition of countries prepared to help reopen the Strait of Hormuz.

"The prospects for an early resolution to the conflict with Iran or the reopening of the Strait of Hormuz remain slim," said Tony Sycamore, an analyst at IG.

Oil prices in dollars per barrel (about 159 litres)