Global Oil Prices Top $126, Then Decline on Profit-Taking

International oil prices surpassed $126 a barrel on the 30th (local time), reaching a four-year high, but subsequently declined. In Asian markets, Brent crude futures rose to $126.41 a barrel during intraday trading, marking a new intraday high in four years. West Texas Intermediate (WTI) futures also climbed to $110.93 a barrel intraday, reaching their highest level since April 7.

This surge in oil prices was triggered by concerns over the prolonged potential blockade of the Strait of Hormuz. News of the U.S. military reviewing new military options and U.S. President Donald Trump's directive to prepare for a long-term maritime blockade of Iran fueled supply disruption fears and drove oil prices higher.

Market participants analyzed that the previous day's excessive reaction was recognized, and as month-end approached, hedge funds engaged in profit-taking, exerting downward pressure on oil prices. Brent crude futures for June delivery closed at $114.01 a barrel on the ICE Futures Exchange, down 3.4% from the previous session. WTI futures for June delivery closed at $105.07 a barrel on the New York Mercantile Exchange, down 1.7%.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, told Reuters, "We are seeing intraday price swings of the magnitude of monthly ranges, and the market is chaotic and very difficult to analyze from a fundamental perspective."