The price retreated to around $120 by the time markets in Europe opened on Thursday and continued to fall through the morning. The Brent contract for June delivery was trading at $113.91 a barrel<\/a> in mid-afternoon trade in London, while American crude for June delivery was changing hands at $104.82.<\/p>\n Oil prices have already elevated since the war began on Feb. 28 and began climbing further on Wednesday after Trump met with executives of U.S. oil companies the previous day about how to deal with supply disruption from the closure<\/a> of the Strait of Hormuz by Iran, which has vowed it will continue until the United States’ blockade of its ports is lifted.\n<\/p>\n The group discussed “steps we could take to continue the current blockade for months if needed and minimize impact on American consumers,” a White House official said.<\/p>\n Around 25% of the world’s oil supply passes through the strait and the prospect of it remaining effectively closed for months has set alarm bells ringing in markets as traders’ faith in an early resolution fades and “the reality of the supply situation” sets in.<\/p>\n “The breakdown of talks between the U.S. and Iran, along with President Trump reportedly rejecting Iran’s proposal for a reopening of the Strait of Hormuz, has the market losing hope for any quick resumption in oil flows,” said William Patterson, ING’s Singapore-based head of commodities strategy.<\/p>\n Trump has said he believes the regime in Tehran will blink first, saying they were less afraid of the bombing than the blockade, with U.S. officials banking it will force Iran to shutter oil production because the oil has nowhere to go and the country lacks sufficient storage facilities.<\/p>\n \t\t\t![](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/04\/1777579332_833_This-week-in-Washington_1_1.jpg\")
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