Oil Prices Surge to Four-Year High Amid Trump Warnings

Oil prices reached a four-year high, with Brent crude for June delivery peaking at $122.53 before settling around $120, while West Texas Intermediate was around $108. Donald Trump warned of a potential blockade of Iranian ports, which could exacerbate tensions and impact oil supply.

This warning follows stalled peace talks with Tehran, which is expected to submit a new proposal regarding the crucial Strait of Hormuz. The Wall Street Journal reported that U.S. national security officials are preparing for a prolonged blockade, which could compel Iran to negotiate on its nuclear program.

The stock market reacted negatively, with major indices in Tokyo, Hong Kong, and Shanghai experiencing declines. Despite the oil price surge, traders remain cautious about the broader economic implications, particularly regarding inflation and energy costs, as the Federal Reserve faces dissent among its members regarding interest rate policies.