LONDON: Global oil prices dropped after hitting a four-year high of more than $126 a barrel on Thursday on concerns that the US-Iran war could worsen and lead to a protracted Middle East oil supply disruption that could hurt global economic growth.
Global oil benchmark Brent crude futures were down $1.51, or 1.28 percent, to $116.50 a barrel as of 1.47 p.m. Saudi time, after touching an intraday high of $126.41, the loftiest since March 9, 2022. The prompt contract for June delivery expires on Thursday.
The market had moved higher after Axios, citing unidentified sources, reported late on Wednesday that US President Donald Trump is slated to receive a briefing on Thursday on plans for a series of military strikes on Iran in hopes it will return to negotiations on its nuclear program.
Prices later dropped without any obvious catalyst, before the declines reduced after Iran’s supreme leader said in a statement the new management of the Strait of Hormuz “will bring calm and progress” as well as “economic benefits” to all Gulf nations, according to Reuters.
Two large sell orders for June Brent traded shortly before 11.30 a.m. Saudi time, traders noted and LSEG data showed.
