Crude prices surge as the US blockade on Iran continues, pressuring Tehran to agree to a nuclear deal.
Brent crude prices surged above $125 per barrel on Thursday after US President Donald Trump said the naval blockade of the Strait of Hormuz would remain in place until Iran agrees to a deal with Washington.
Forward contracts for the seaborne benchmark jumped 6.84% to $125, marking a $7.12 increase in Asian trading, while West Texas Intermediate rose 3.30% to $110.30 as of 4:53am GMT on April 30, 2026.
In an interview with Axios on Wednesday, Trump said the blockade is being used as a key lever to pressure Iran over its nuclear programme.
“The blockade is proving more effective than bombing. They are being squeezed hard, and it will only get worse. They cannot have a nuclear weapon,” Trump told Axios.
According to Axios, Trump rejected Iran’s proposal to first reopen the Strait of Hormuz and lift the blockade before holding nuclear talks. Instead, he has insisted that Tehran address US concerns before any easing of restrictions.
The report added that while Trump currently sees the blockade as his main source of leverage, he may consider military action if Iran does not agree to negotiations, though he declined to outline any specific plans during the interview.
The development comes amid rising tensions in West Asia and growing concerns over disruptions to global oil and gas supplies. The Strait of Hormuz remains a critical route for energy shipments, and any prolonged blockade is likely to impact global markets.
Reacting to the situation, renowned economist Jeffrey Sachs warned that the world economy could face severe consequences due to the ongoing crisis.
“The world economy will suffer a terrible crisis,” Sachs said while addressing the FICCI Legend Series, highlighting the risks posed by sustained supply disruptions.
He said the current situation reflects a fragile balance in global energy markets, warning that prices could climb further if supply shortages persist.
“The expectation is that the shortage will somehow ease… but if it doesn’t, prices will keep rising,” he added.
Jeffrey Sachs also noted that the combination of geopolitical tensions and rising oil prices could trigger broader economic instability across countries.
The continued surge in crude prices is being closely monitored by global markets, as prolonged disruptions in the Strait of Hormuz could further tighten supply and drive prices even higher in the coming period.
