Crude oil prices in the global market jumped to $120 per barrel (bbl) during the early market session on Thursday, April 30, after investors became cautious amid reports of a possible extension of the US blockade at the Strait of Hormuz, and an absence of any potential peace deal between Iran and the United States.
The global benchmark Brent crude oil prices for the June futures surged to $120 per bbl on April 30, before dropping slightly in the morning market session, according to the data collected from Barchart.
As of 7:04 am (IST), Brent crude oil prices were trading 1.53% higher at around $119.84 per bbl on Thursday, compared to $118.03 per bbl at the previous market close, according to the exchange data. Brent crude surged to above $115 per bbl during Wednesday’s market session.
The US-based West Texas Intermediate (WTI) crude oil prices surged to $108.86 per bbl during Wednesday’s market session amid the mixed global cues from the West Asia crisis. Investors were trading with caution due to the dynamic developments and US President Donald Trump’s commentary.
As of 7:05 am (IST), WTI crude oil June futures were trading at around $107.20 per bbl on April 30, compared to $106.88 per bbl at the previous market close, according to Investing.com data.
Why are oil prices rising today?
Oil prices remained elevated, crossing the psychological mark of $120 per bbl on Thursday as tensions loomed over global market investors amid the absence of a potential peace deal between Iran and the United States.
According to a CNN report, President Donald Trump met with his top executives and even Chevron CEO Mike Wirth, where the officials discussed measures which can be taken to continue the US blockade of Iranian ports for months, if needed.
White House officials also told the news portal that this conversation was part of a wider discussion on oil prices amid the US-Iran conflict in West Asia.
The market sentiment was also heightened after US President Donald Trump, in a recent post on Wednesday, said that Iran does not know how to sign a non-nuclear deal and how the Gulf nation needs to keep its act together.
“Iran can’t get their act together. They don’t know how to sign a non-nuclear deal. They better get smart soon! President DJT,” said Trump in his recent post on Truth Social.
The key focus in the market remained on any signs of a peace deal, relief for investors, while the people also focused on the developments related to any further escalation at the key trading route, Strait of Hormuz, amid the existing ceasefire deal.
Gold prices today
As of 9:50 pm (ET), the New York Mercantile Exchange-based COMEX gold prices were trading 0.62% lower at $4,589.60 per ounce, compared to $$4,561.50 per ounce at the previous commodity market close.
Gold prices on Thursday were witnessing high demand from commodity market investors amid a lower dollar rate in the market. Traders tend to buy more of the precious yellow metal if the dollar depreciates, as they will be able to purchase a higher quantity at the same price.
Bloomberg US Dollar Spot index (DYX) showed that the greenback was trading 0.03% lower at 98.929 as of 9:51 pm (ET), on April 29, compared to the previous currency market close, according to the exchange data.