Crude oil prices jumped by ₹445 to hit a record ₹10,571 per barrel in futures trade on Thursday, with Brent breaching $126 a barrel in global markets amid reports that US President Donald Trump is weighing military options against Iran.

On the Multi Commodity Exchange, crude oil for May delivery jumped by ₹445, or 4.39%, to touch a fresh high of ₹10,571 per barrel, extending gains for the fourth straight session.

Analysts said the rise in oil prices came on the back of reports of a possible military briefing for President Trump on options for action against Iran, raising concerns about further escalation in West Asia.

The briefing signals that Trump was considering major combat operations either to break the deadlock in negotiations or deliver a final blow before ending the war, the reports said.

Globally, Brent oil futures for the June contract extended its gains for the ninth consecutive session, rising by $4.73, or 3.89%, to hit an intra-day high of $126.41 per barrel -- a level last seen on March 8, 2022.

West Texas Intermediate (WTI) for the same contract also appreciated by $4.05, or 3.79%, to hit an intra-day high of $110.93 a barrel in New York.

Market experts said the rally was also fuelled by stalled ceasefire negotiations between the US and Iran, and the surprise exit of the United Arab Emirates from the Organisation of the Petroleum Exporting Countries (OPEC).

Earlier, Trump had rejected Tehran's latest proposal to reopen the Strait of Hormuz, indicating the naval blockade would stay in place until a nuclear agreement is reached.

Brokerage firm Kotak Securities, in a note, said escalating US pressure on Iran, including potential extension of a naval blockade and stricter enforcement actions on tanker movements, has heightened concerns over constrained flows through the Strait of Hormuz.

Additional support came from a sharp 6.2 million barrel draw in US crude inventories and declines in refined product stocks, signalling resilient demand, the brokerage firm said.