Brent crude touched $122 to $123 a barrel on April 30, 2026, the highest price since 2022 and a peak for the war with Iran. It gained about 3 percent during the session and roughly 20 percent over the previous week.
The rally had begun a day earlier, when Brent first pushed past $120. Traders pointed to two things. One was a report that the president would be briefed by the Pentagon on military options. The other was a run of public signals favoring a prolonged blockade of the Strait of Hormuz.
The United States has blocked Iranian oil exports through the strait, closing the route to most ships. The aim is to cut Tehran’s oil revenue and push its producers toward shutting wells. Floating storage of oil has climbed to record levels, because the export blockades have limited shipments and reduced the seaborne capacity available.
A war in its ninth week
The conflict began at the end of February and had entered its ninth week by April 29. A cease-fire on April 8 failed. Nobody can say when flows might return to normal.
Since the fighting started, Brent has climbed about 75 percent. It has more than doubled so far this year from around $60 a barrel.
Analysts have now raised their oil-price forecasts for the second time since the war began. Their argument is that a long closure of the shipping lane could drain crude supplies and keep prices high. They also see a risk that producers will idle fields if revenues stay squeezed.
Bonds feel it too
The oil shock reached other markets. The 10-year U.S. Treasury yield rose to about 4.4 percent as investors priced in higher inflation. Stocks held up comparatively well, which left a gap between equity gains and caution in the bond market. That gap could raise borrowing costs for consumers. Central banks have kept policy steady through the shock.
UBS’s Mark Haefele warned that the increase in oil prices could add more than 140 basis points to European inflation. That, he said, would reduce the room for further central-bank tightening.
