Oil prices retreat after hitting 4-year high on U.S.-Iran war fears

Oil prices pulled back after a dramatic surge to a four-year peak above $126 a barrel today, as traders weighed the risk that the US-Iran war could intensify into a longer conflict and choke Middle East supplies in a way that would threaten global economic growth.

The rally gathered pace earlier after Axios, citing unidentified sources, reported overnight that US President Donald Trump was due to be briefed today on plans for a series of military strikes on Iran, an effort aimed at pressuring Tehran back into talks over its nuclear programme.

Later, however, the market reversed course, with prices falling back despite the absence of any clear trigger.

Tamas Varga of oil broker PVM said the drop did not appear to be tied to any single event and instead underscored the sharp swings that have gripped the market since the Iran war began on February 28.

Global oil benchmark Brent crude futures fell $2.05, or 1.7%, to $115.98 a barrel today after earlier climbing to an intraday high of $126.41, the strongest level since March 9, 2022.

The front-month June contract expires today. The more heavily traded July contract stood at $109.93, down 51 cents, or 0.5%.

Traders pointed to two large sell orders in June Brent shortly before 9.30am, a move also reflected in LSEG data.

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