WTI crude oil futures surged 11% on Thursday, breaking above $111 per barrel—the highest level in nearly four years—as markets reassessed the scale of supply risks stemming from the ongoing conflict in the Persian Gulf. US President Trump vowed to intensify strikes on Iran and its infrastructure in the coming weeks if Tehran rejects US ceasefire terms, prompting a sharp response from Iranian officials.
Earlier in the session, oil prices had retreated following reports that Oman and Iran were coordinating a transit fee for tankers passing through the Strait of Hormuz, briefly raising hopes of more normalized supply conditions. However, that optimism quickly faded. Dated Brent benchmarks climbed above $140 per barrel, their highest level since 2008.
In parallel, the UK is hosting talks with dozens of nations on securing the vital shipping route, while OPEC+ is weighing a possible production increase. Still, any additional supply is expected to have little immediate impact on the market.