Oil Prices Surge Past $120 as U.S.–Iran Conflict Chokes Global Supply

By Aurax Radio | April 30, 2026 | 2 min read

Global oil prices have surged past $120 a barrel as the United States–Iran conflict disrupts supply through the Strait of Hormuz, raising fears of a prolonged energy crisis and global economic slowdown.

Oil tankers in Strait of Hormuz during global oil supply crisis

Oil tankers line up near the Strait of Hormuz as global supply fears drive prices higher.

Global oil prices have surged to multi-year highs as the war between the United States and Iran drags on with no diplomatic breakthrough. Benchmark Brent crude has climbed above $120 per barrel—levels not seen since before the 2008 financial crisis—driven by fears that supply disruptions will persist.

The crisis centers on the closure of the Strait of Hormuz, a critical shipping route that normally carries about one-fifth of the world’s oil. Iran’s actions and a U.S.-led blockade have effectively choked supply, creating what analysts describe as one of the largest energy disruptions in modern history.

Oil refinery with flames during global oil price surge

Oil refinery operations continue as global prices surge amid the U.S.–Iran conflict

Efforts to end the conflict remain stalled, with Washington pushing for limits on Iran’s nuclear program while Tehran demands control over the strait and compensation. The deadlock has heightened uncertainty across global markets and raised the risk of a prolonged energy crisis.

The economic impact is already spreading. Stock markets in parts of Asia have fallen, currencies have weakened, and economists warn of stagflation—slowing growth combined with rising inflation—especially in Europe and Asia, which depend heavily on imported energy.

Meanwhile, the United States has increased oil exports to meet global demand, partially offsetting shortages but also tightening domestic inventories. Analysts say sustained high prices could eventually curb demand, but not enough to quickly stabilize markets.

Sources: BBC News, Associated Press, Reuters

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