Oil prices hovered close to four-year highs on Thursday as investors reacted to comments by US President Donald Trump suggesting that the American blockade of Iranian ports may remain in place for an extended period.

The development comes as negotiations between Washington and Tehran over Iran’s nuclear programme continue to stall. Although Iran reportedly submitted a new proposal this week aimed at reopening the strategic Strait of Hormuz, Trump is said to believe Tehran is not negotiating sincerely.

According to The Wall Street Journal, the US president instructed national security officials to prepare for a prolonged blockade designed to pressure Iran into abandoning its nuclear ambitions.

A White House official, speaking anonymously, disclosed that Trump discussed possible measures with oil executives during a Tuesday meeting. The talks reportedly focused on stabilising global oil markets and maintaining the blockade for several months while reducing the impact on American consumers.

Trump also told Axios that he considered the blockade more effective than direct military strikes.

“The blockade is somewhat more effective than the bombing,” he said. “They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon.”

He added that the naval restrictions would remain until a new agreement addressing Iran’s nuclear activities is reached.

On his Truth Social platform, Trump criticised Tehran’s handling of the negotiations, writing: “Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!”

He also shared an image of himself carrying an assault rifle with the caption, “NO MORE MR. NICE GUY!”

The possibility of the Strait of Hormuz remaining disrupted for months raised fresh concerns in global energy markets. The waterway is one of the world’s most important oil transit routes, with roughly one-fifth of global oil and gas shipments passing through it.

As a result, crude prices climbed sharply. Brent crude for June delivery, which surged to $122.53 on Wednesday, traded near $120 during Asian market hours on Thursday. West Texas Intermediate crude also rose to around $108 per barrel.

Market analysts said traders are increasingly adjusting to the possibility that the geopolitical crisis could last much longer than initially expected.

Stock markets across Asia recorded losses amid the uncertainty. Major indexes in Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Manila, and Jakarta all closed lower, while Singapore, Wellington, and Taipei posted gains.

The US dollar strengthened against other major currencies as investors shifted toward safer assets.

Despite the broader market pressure, optimism surrounding artificial intelligence continued to support parts of the technology sector. South Korea’s Kospi index remained near record levels after Samsung Electronics announced a 750 percent jump in operating profit, driven largely by strong demand for AI-related semiconductor chips.

Samsung also projected healthy demand in the coming quarter.

The upbeat earnings followed strong quarterly results from major US technology firms including Microsoft, Meta, and Google parent company Alphabet, all of which exceeded market expectations.

US stock futures edged higher, though analysts warned that the divergence between rising energy prices and investor optimism may not last.

Stephen Innes of SPI Asset Management said expensive energy costs could eventually spread across the broader economy.

“Expensive energy is not abstract,” he said. “It moves quietly through the system, from the pump to logistics to margins, eventually surfacing in the data that central banks respond to after the fact.”

Investors were also closely watching developments at the US Federal Reserve after four policymakers dissented during the latest interest rate decision — the highest level of disagreement since 1992.

Although the Fed chose to leave rates unchanged due to concerns about inflation linked to rising oil prices, several members opposed including language suggesting a possible rate cut in the future. Another voting member, Stephen Miran, reportedly pushed for a quarter-point reduction.

The meeting also marked Jerome Powell’s final session as Federal Reserve chairman ahead of Kevin Warsh’s expected takeover next month.

Trump has repeatedly criticised Powell during his presidency for not lowering borrowing costs aggressively enough.

In early Thursday trading, Brent crude rose 2.9 percent to $121.48 per barrel, while West Texas Intermediate gained 1.9 percent to $108.92.

Asian stock markets mostly traded lower, with Japan’s Nikkei 225 falling 1.0 percent and Hong Kong’s Hang Seng Index declining 1.3 percent. The US Dow Jones Industrial Average had earlier closed down 0.6 percent, while London’s FTSE 100 lost 1.2 percent.