Oil prices soared above $120 a barrel on Tuesday, a dramatic spike triggered by the Trump administration's renewed crackdown on Iranian oil exports. The move, which tightens sanctions enforcement, threatens to remove significant supply from an already stressed global market.
Analysts say the latest escalation—including naval interceptions and secondary sanctions on buyers—could cut Iran's crude exports by up to 1 million barrels per day. That comes as OPEC+ continues to limit output and geopolitical risks mount.
The rally marks the highest price level since the 2022 Ukraine war peak. Insiders warn that sustained prices above $120 could slow global economic growth and reignite inflation fears.
White House officials defended the action as necessary to counter Iranian aggression, but critics say the move risks alienating allies and destabilizing energy markets. Meanwhile, consumers are bracing for higher gasoline prices at the pump.