Brent crude falls below 110 dollars after volatile spike above 120

Thursday 30 April 2026 - 16:21

By: Dakir Madiha

Brent crude falls below 110 dollars after volatile spike above 120

Brent crude slipped below 110 dollars a barrel on Thursday, pulling back from a brief spike above 120 dollars the previous day, one of the most volatile stretches on oil markets since the start of the Strait of Hormuz crisis two months ago. The sharp moves underscore a market caught between fears of a prolonged supply disruption and repeated profit‑taking, with no clear diplomatic breakthrough in sight between Washington and Tehran.

On Wednesday, front‑month Brent futures for July delivery briefly traded above 120 dollars a barrel for the first time since June 2022, according to trading data from the ICE exchange in London. The surge followed reports that Admiral Brad Cooper, head of the U.S. Central Command, was preparing expanded military options for President Donald Trump on Iran, which intensified expectations of a possible escalation. By Thursday morning, however, the benchmark had shed more than 1.4 percent to about 108.9 dollars at 11:18 GMT as traders locked in gains. The July contract, the most actively traded, had reached 114.70 dollars overnight before closing near 109.80 dollars, according to reporting citing the Associated Press via the Times of India.

The swings unfold against a background of stalled talks between the United States and Iran. Trump has told Axios he will not lift the naval blockade on Iran’s ports unless Tehran agrees to a comprehensive deal, while Iran’s three‑step proposal to separate nuclear issues from the reopening of the Strait of Hormuz has found no traction in Washington. The first high‑level direct meeting between the two countries since 1979, held in Islamabad on April 11, failed to resolve disputes over the blockade, uranium enrichment, and sanctions. Iran’s foreign minister, Abbas Araghchi, traveled to Moscow on April 27 seeking diplomatic backing, but no new round of negotiations has been announced. Analysts quoted by Al Jazeera warn the impasse is effectively blocking some 10 to 13 million barrels of oil per day from reaching international markets.

The prolonged closure of the Strait has hit Asian importers hardest. In 2024, roughly 70 percent of crude flowing through the Strait was destined for China, India, Japan, and South Korea. Japan has drawn on its strategic reserves, which cover about 150 days of consumption, while China ordered major refineries in March to halt fuel exports in order to conserve stocks. India, whose reserves cover roughly two months of demand, and South Korea have joined an emergency release coordinated by the International Energy Agency. Meanwhile, buyers across Asia are competing for more expensive alternative cargoes from the United States, Africa, and Australia. European gas markets have also remained tight; prices jumped about 60 percent between the start of the conflict on February 28 and the brief cease‑fire announced on April 8, and have stayed elevated since. As Tamas Varga of PVM Oil Associates put it, with diplomacy at a standstill, the missing 10–13 million barrels a day mean there is “only one direction” for oil prices over the medium term.