Brent June futures surged 4.1% to $122.82 a barrel in early European trade, topping $123 for the first time since 2022. The rally reflects heightened fears that the United States could resume military action against Iran, extending supply shocks in the Persian Gulf. West Texas Intermediate rose 1.6% to $108.56 a barrel.

ING analysts said market sentiment shifted from over‑optimism to confronting the reality of Gulf disruptions. The July Brent contract, more liquid, climbed 2.1% to $112.70, while traders priced in a possible naval blockade that could choke the Strait of Hormuz. Such moves underscore the fragility of global fuel supplies when geopolitics intervene.

President Trump's directive to prepare for an extended blockade followed Tehran's proposal to reopen the strait and pause nuclear talks, which Washington deemed insincere. With negotiations stalled, investors brace for a prolonged period of heightened volatility and tighter oil inventories worldwide.

Energy‑intensive industries and airlines now face higher input costs, prompting some to hedge exposure or seek alternative fuel sources. The latest price spikes signal that any further escalation could push crude toward levels not seen since the early 2020s, tightening profit margins across the supply chain.