Oil rally extends as Brent and WTI climb on supply fears

Oil prices extended their rally on April 30 as concerns about Middle East supply disruptions kept Brent and WTI elevated.

Reuters reported that Brent crude touched an intraday high of $126.41, its highest level since March 9, 2022, before easing to $121.76 by 08:20 GMT. WTI was trading at $108.34 a barrel at 06:59 GMT, after a prior-session gain and its highest level since April 7.

The move was driven by concern that the U.S.-Iran war could worsen and keep more oil off the market. Bloomberg also reported that the rally extended as traders saw no clear progress on the Strait of Hormuz, a key shipping route for crude flows.

The EIA has already said in its April outlook that Hormuz-related disruptions are supporting a crude risk premium and could keep Brent elevated before prices ease later in the year.

For now, the market is still trading on geopolitics first and fundamentals second. The immediate question is whether the latest price spike can hold into the close, or whether more selling appears once the intraday move is fully digested.