Global oil prices surged past $120 per barrel after reports signaled a major escalation in tensions involving Iran, raising fears of a prolonged disruption to one of the world’s most critical energy supply routes.

Brent crude, the international benchmark, briefly climbed to around $122 per barrel, its highest level since 2022, as traders reacted to growing expectations that restrictions on Iranian trade and maritime activity could remain in place for an extended period.

Market sentiment hardened following high-level discussions between US leadership and senior energy industry executives in Washington focused on managing the economic fallout from the conflict and stabilizing domestic fuel markets. Investors interpreted the engagement as an indication that pressure on Iran’s oil exports would continue rather than ease in the near term.

The rally has been driven largely by developments around the Strait of Hormuz, a narrow shipping corridor responsible for transporting roughly one-fifth of global oil and liquefied natural gas supplies. Ongoing military tensions have severely disrupted vessel movements through the waterway, tightening available supply and amplifying volatility across energy markets.

Iran has restricted maritime traffic near the strait following military escalation earlier this year, while US naval forces have moved to intercept ships connected to Iranian ports. The standoff has effectively reduced normal shipping flows, forcing traders to price in heightened geopolitical risk.

Oil prices have swung sharply since the conflict intensified, briefly retreating earlier in April amid hopes of de-escalation before resuming an upward climb as negotiations stalled and supply concerns returned. Over the past two weeks, prices have steadily advanced as signs emerged that disruptions could persist.

Despite recent fluctuations, crude prices remain significantly above levels seen before the conflict began. Analysts warn that a sustained interruption to shipments through Hormuz could tighten global inventories further, fueling inflation pressures and increasing the risk of broader economic strain if energy flows fail to normalize.