Brent crude tops $120 on US-Iran tensions

Brent crude rose above $120 a barrel on Thursday, its highest level since June 2022. The global benchmark has climbed roughly 47% since strikes on Iranian targets in late February.

U.S. crude futures gained 2.59% on the day. Gasoline rose 1.44% and heating oil advanced 3.28%. European gas benchmarks also moved higher, with the TTF index up 2.81% and U.K. gas higher by 2.03%.

U.S. officials expect President Donald Trump to receive a briefing from the head of U.S. Central Command on potential military options regarding Iran. Other officials have instructed aides to prepare plans for an extended blockade of Iranian ports to increase pressure on Tehran.

Traders added a risk premium to oil prices over concerns about interruptions to exports and tanker traffic through key routes.

The Treasury Department announced measures aimed at limiting Iran’s ability to sell crude and to finance weapons and proxy groups. Treasury Secretary Scott Bessent outlined targets including Iran’s international shadow banking infrastructure, access to crypto, the shadow fleet, weapons procurement networks, funding channels for proxy groups in the region, and independent Chinese refineries that process Iranian oil.

Iran pushed back. Parliament Speaker Mohammad Bagher Ghalibaf rejected the economic restrictions, and the Iranian military described its restraint to date as intended to allow room for diplomacy. Planned diplomatic talks in Islamabad did not take place over the weekend.

Market participants said physical balances were tightening. Iran faces storage constraints because exports have been limited, which could force producers to cut output if crude cannot be moved. Disruptions and the threat of interruptions to tanker traffic through the Strait of Hormuz continued to add volatility to global oil markets.

The move above $120 reflected these supply concerns and geopolitical risk premiums, with traders watching for any additional military signals, new sanctions affecting export channels, or signs of renewed diplomatic engagement that could ease crude flows.