Global oil prices surged sharply on Thursday as rising tensions between the United States and Iran fueled concerns over the prolonged closure of the Strait of Hormuz, one of the world’s most critical oil shipping routes.

Brent crude, the international benchmark, briefly climbed above $126 per barrel before settling at $121.90 for June delivery, up 3.3%. Brent crude for July delivery rose 1.4% to $112.02, while U.S. benchmark West Texas Intermediate (WTI) crude increased 1.3% to $108.28 per barrel.

The spike comes as the United States continues its blockade of Iranian ports and the Strait of Hormuz remains closed, intensifying fears of major disruptions to global oil supplies. Investors are also reacting to reports suggesting that U.S. President Donald Trump may support further military action against Iran, reducing hopes for a swift diplomatic resolution.

Analysts at ING Bank said the breakdown of talks between Washington and Tehran, combined with reports that Trump rejected an Iranian proposal to reopen the Strait of Hormuz, has weakened market expectations for a quick resumption of oil flows.

Before the conflict erupted in late February, Brent crude was trading near $70 per barrel. The latest rally has pushed oil prices to their highest levels since the 2008 global financial crisis, when Brent crude reached a record high of $147.50 per barrel.

The sharp rise in energy prices is raising concerns about inflationary pressure worldwide, particularly affecting transportation, airlines, manufacturing, and countries heavily dependent on fuel imports.