• Oil prices exceeded $120 per barrel, spurred by US-Iran tensions.
• Trump directs blockade on Iranian ports, impacting global supply.
• Negotiations with Iranian officials have stalled, raising market fears.
• Disruptions in the Strait of Hormuz affect 20% of global oil supply.
• US oil executives discuss strategies to mitigate fuel price impacts.

Global oil prices surged past $120 on Thursday, briefly hitting $122 per barrel, marking the highest level since 2022. This spike is largely attributed to escalating fears of prolonged supply disruptions due to the US blockade of Iran, which has intensified amid stalled negotiations over Tehran's nuclear program. The Brent crude for June delivery rose around 1.9%, with US West Texas Intermediate (WTI) also seeing significant gains. The increased prices follow a series of strong market gains, as both Brent and WTI have surged dramatically in the last week, according to Indiatimes and BBC.

This upsurge in oil prices occurs against a backdrop of increasing military tensions, as reports indicate that the US military is preparing plans for potential strikes on Iran aimed at breaking the deadlock in negotiations. These military strategies could involve targeting critical infrastructure and potentially securing the Strait of Hormuz, a vital corridor for global oil transport, according to information from BBC and Al Jazeera.

Concerns about an extended blockade have weighed heavily on global markets, particularly because the Strait of Hormuz is essential for transporting approximately 20% of the world's oil supply. Iranian forces have increasingly limited shipping through this strategic strait, leading to severe supply chain disruptions. Recent meetings between President Trump and oil company executives focused on ways to minimize the impact of these disruptions on consumers, highlighting the administration's recognition of the potential economic fallout, according to Indiatimes and Al Jazeera.

The recent exit of the United Arab Emirates from OPEC, effective May 1, adds another layer of complexity to the situation. Trump has welcomed this departure, suggesting it could stabilize global oil prices. However, analysts express skepticism that the UAE's exit will alleviate market pressures immediately, especially under the current constraints imposed by Iran's control over the Strait of Hormuz. The prediction that Gulf states may take months to return to pre-war production levels emphasizes the fragility of the current oil market dynamics, according to BBC and Al Jazeera.