Global oil markets surged on Wednesday after US President Donald Trump said a US naval blockade against Iran could continue for months, pushing Brent crude to its highest level in over four years.
Brent oil futures jumped 7.6 per cent to US$119.69, a level not seen since the early stages of the Ukraine conflict in 2022, as fears grew over supply disruptions through key global routes.
Trump reportedly told oil executives that restricting Iranian ports was a more effective strategy than air strikes, according to a White House official. He also discussed steps to maintain the blockade while attempting to reduce the impact on American consumers.
In remarks to Axios, Trump said of the situation involving Iran: “They are choking like a stuffed pig. And it is going to be worse for them,” reflecting the escalating rhetoric surrounding the ongoing tensions.
The developments come as diplomacy between the United States and Iran remains stalled, with both sides unable to reach a breakthrough in negotiations. Iranian demands for an end to the blockade before any agreement have further complicated talks.
Trump also held a phone call with Russian President Vladimir Putin, who reportedly warned of “damaging consequences” if the United States and Israel continue military actions against Iran.
The crisis has raised global concerns over the Strait of Hormuz, a critical shipping lane through which around one-fifth of the world’s oil supply passes, with Iran previously signalling it could exert control over the waterway.
Economic pressure is also mounting, with rising fuel prices affecting consumers in the United States, while international organisations warn of broader global consequences. The United Nations Development Programme cautioned that the conflict could push more than 30 million people into poverty across 160 countries.
Iran’s currency has also weakened sharply, hitting historic lows against the US dollar, while domestic sentiment appears increasingly strained amid worsening economic conditions.
Despite this, Iranian officials maintain that the blockade strategy is intended to destabilise the country internally. Parliamentary Speaker Mohammad Bagher Ghalibaf said the US move aims to “make us collapse from within”.
Meanwhile, tensions have also spread to Lebanon, where renewed violence has been reported despite a ceasefire between Israel and Hezbollah. The Lebanese army said Israeli strikes have wounded and killed soldiers in separate incidents, further complicating regional stability.
Lebanese President Joseph Aoun urged a return to negotiations, stressing that security can only be achieved through diplomatic engagement, even as UN-backed reports warn of worsening humanitarian conditions in the region.
