Global oil prices dropped after reaching a four-year high of more than $126 a barrel on Thursday due to concerns about the possibility of the US and Iran engaging in further conflict, which could result in disruptions to Middle East oil supply and negatively impact global economic growth.

Brent crude futures, the global benchmark for oil, decreased by $1.51, or 1.28 percent, down to $116.50 per barrel at 1:47 p.m. Saudi time after touching an intraday high of $126.41.

The June delivery contract for Brent expired on Thursday.

Prices surged initially following a report from Axios, citing unidentified sources, which stated that US President Donald Trump was set to receive a briefing on military strikes against Iran in the hopes of returning the country to negotiations regarding its nuclear program.

However, prices later declined without any apparent trigger, and the decline subsided after Iran's supreme leader issued a statement indicating that the new management of the Strait of Hormuz would bring calm, progress, and economic benefits to all Gulf nations, as reported by Reuters.

Two significant sell orders for June Brent were executed shortly before 11:30 a.m. Saudi time, according to traders and data from LSEG.