Oil Prices Briefly Surge Past 126 US Dollars per Barrel, Now Plunge Sharply, Inflation Risks Loom
NEW YORK — Global oil prices moved dramatically within a single day, surging to as high as 126.41 US dollars per barrel before plummeting sharply at the close of trading. This rapid spike and correction reflects increasingly unpredictable market turbulence, while amplifying global inflation risks.
Citing Reuters, Brent crude oil, which reached its highest level since March 2022, closed down 4.02 US dollars or 3.41 percent at 114.01 US dollars per barrel. Meanwhile, US West Texas Intermediate (WTI) crude also weakened by 1.81 US dollars or 1.69 percent to 105.07 US dollars per barrel, after previously touching 110.93 US dollars per barrel.
This up-then-sharp-down movement is not without cause. PVM analyst Tamas Varga assesses that the price correction more reflects the high market volatility since the Iran conflict began, rather than any single specific factor. In other words, the market is currently moving swiftly in response to constantly shifting uncertainties.
Behind this daily fluctuation, the underlying pressure has not eased. The market remains haunted by concerns over disruptions to global oil supplies, particularly because the Strait of Hormuz—the vital world energy distribution route—has not yet returned to normal. This uncertainty keeps oil prices on an upward trend for the fourth consecutive month.
Geopolitical tensions are further thickening the market drama. US President Donald Trump is scheduled to receive briefings on plans for new military strikes against Iran. On the other side, Iran has warned of launching a “long and painful” attack if the US resumes military action, while asserting its control over the Strait of Hormuz.
Since the US-Israel war against Iran began on 28 February 2026, Brent prices have doubled and WTI has risen around 90 percent. This sharp surge forms a chain leading to broader risks, from rising energy costs to global inflationary pressures.
Under these conditions, oil price movements are more than just numbers; they mirror risks spreading to various sectors. As long as the conflict does not subside and distribution routes do not recover, high volatility could persist and directly impact inflation and fuel prices.