Oil markets have reacted to reports that the United States is preparing for an “extended blockade” of Iran with a new price increase.
The price of a barrel of Brent crude oil has exceeded $118, the highest level this month, after reaching $110 on Tuesday evening. At the same time, US President Donald Trump discussed the war with Vladimir Putin over Iran.
On Wednesday, the price of oil briefly reached $119, an increase of 7% in one day.
Earlier, the Wall Street Journal reported that US President Donald Trump instructed his aides to prepare for an extension of the current blockade of Iranian ports, to put pressure on the country’s economy. Tehran has announced that in response to the blockade, it will continue to impede shipping through the Strait of Hormuz.
Oil prices have fluctuated sharply since the start of the war, as the conflict has effectively closed the Strait of Hormuz, a key shipping lane, for weeks. Normally, about a fifth of the world’s oil and liquefied natural gas shipments pass through it.
Iran has significantly restricted shipping through the strait in response to US and Israeli strikes that began on February 28. Tehran has warned that any ship approaching the strait will be a military target.
In response, the US has said its forces will intercept or turn back ships heading to or from Iranian ports.
