Oil briefly touches $126, its highest price in four years

""The main catalyst for the latest jump in oil prices was a report from Axios, suggesting that an escalation in the conflict was still being considered as an option," Deutsche Bank analysts wrote in a note."

""The oil market has moved from... hoping for resolution to fixating squarely on the physical scarcity and long-term threat to supply with the possible escalation of conflict now looming," Wilson wrote in a note."

Oil prices briefly exceeded $126 a barrel, the highest in four years, driven by fears of escalating US-Iran tensions. Brent crude peaked at $126.41 before settling at $116.3, while WTI remained at $106.7. Gasoline prices reached a four-year high of $4.30 per gallon. Analysts noted that a report suggested conflict escalation was still an option. The oil market shifted focus from resolution hopes to concerns over supply scarcity due to stalled negotiations and potential military actions in the region.

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