Oil price hits $125 per barrel — highest since 2022

Global oil prices surged on Wednesday, with Brent crude briefly hitting $125 per barrel.

Data from Oilprice.com showed that Brent crude climbed to as high as $125.60 late on Wednesday before easing slightly to trade at $116.50 as of early Thursday, reflecting a 1.47 percent decline from its peak.

West Texas Intermediate (WTI), the US benchmark, also recorded gains, trading at $106.72 per barrel, although it posted a marginal dip of 0.15 percent in early trading.

The rally marks the sharpest upward movements since 2022 when the Russia-Ukraine war started.

According to BBC, the surge followed after a report that the United States military is set to brief President Donald Trump on new plans for potential action in the Iran war.

Also, earlier reports said Trump had earlier reportedly rejected Tehran’s proposal to reopen the Strait of Hormuz, signaling the naval blockade will remain in place until a broader nuclear agreement is reached.

On April 28, the United Arab Emirates (UAE) said it was quitting the Organisation of the Petroleum Exporting Countries (OPEC) after nearly 60 years of membership.

The Middle East nation is also exiting OPEC+, a wider alliance of the oil cartel.

Suhail Mohamed AlMazrouei, the UAE’s minister of energy, said the country’s decision to leave OPEC also aligns with policy developments in the energy sector.