Oil Surges Past $120 a Barrel as Trump Rejects Iran Ceasefire Overture
Oil Prices Hit Wartime High
On April 29, 2026, international crude oil markets experienced severe turbulence. Following reports that US President Trump rejected Iran’s latest ceasefire proposal and announced the blockade would continue, Brent crude prices briefly broke above the $120 per barrel mark — reaching the highest level since the conflict escalated.
According to BBC reports, oil prices briefly touched above $120/barrel during intraday trading before fluctuating violently in the $118-$120 range. This marks the first time oil has reached this psychological threshold since the Middle East conflict intensified.
Trump Rejects Iran’s Proposal
Iran recently put forward a conditional proposal to reopen the Strait of Hormuz, requiring the US to lift the blockade and halt military operations in exchange. However, the Trump administration clearly rejected the proposal after review. The White House stated that the blockade would remain in place until Iran reaches a comprehensive agreement on its nuclear program.
Trump had previously instructed his staff to prepare for a “long-term blockade.” According to Bloomberg, the US government is assessing the profound impact of a months-long blockade on global energy supplies.
Ripple Effects Across Global Energy Markets
The breach of $120/barrel triggered连锁 reactions across global financial markets. Energy stocks surged, but energy-intensive sectors such as transportation and manufacturing came under pressure. Analysts warned that if oil prices remain at this level, global inflationary pressures will intensify once again.
The Iranian rial also hit a record low, reflecting continued international sanctions pressure on Iran’s economy. Meanwhile, Iranian oil tankers are piling up outside the Strait of Hormuz, further tightening global oil supply.
Market Outlook
Market analysts noted that the next move in oil prices will depend on several key factors:
- Iran situation development: If the Trump administration maintains the long-term blockade, oil prices could continue to climb
- OPEC+ response: The UAE’s recent announcement to exit OPEC puts the global oil producers’ coordination mechanism to the test
- Strategic petroleum reserves: Whether major consuming nations will release strategic reserves to stabilize prices
- Alternative energy supply: Whether non-OPEC producers can quickly ramp up output
Several Wall Street analysts have raised their oil price forecasts for the coming months, with some institutions predicting Brent crude could touch $130/barrel in the near term.
Sources: BBC News, Al-Monitor, CNBC