Oil Prices Rise Amid Reports of US Military Briefing on Iran
Oil prices surged on Thursday in Asian markets following reports that the US military is preparing to brief President Donald Trump on new potential military actions concerning Iran.
According to Axios, US Central Command has developed a plan involving a series of "short and powerful" strikes targeting Iran. This strategy aims to break the current deadlock in negotiations with Tehran. The BBC has reached out to US Central Command and the White House for comment regarding these reports.
Brent crude prices increased by 4.5%, reaching $123.30 (£91.50) per barrel, marking the highest level since Russia's full-scale invasion of Ukraine in 2022.
Energy prices have been on the rise this week as peace talks appear to have stalled, with the critical Strait of Hormuz remaining effectively closed to commercial shipping.
Details of Proposed Military Plans
The Axios report, citing anonymous sources, indicated that the proposed wave of strikes would likely target infrastructure within Iran.
Additionally, another plan reportedly focuses on seizing control of part of the Strait of Hormuz to facilitate its reopening for commercial shipping. This operation could involve deploying troops on the ground, Axios added.
US-traded West Texas Intermediate (WTI) crude oil also experienced gains, rising by 2.3% to approximately $109 per barrel.
The current Brent futures contract for June delivery was set to expire on Thursday. Meanwhile, the more actively traded July contract increased by about 2%, trading near $113 in morning Asian sessions.
Futures contracts are agreements to buy or sell an asset at a predetermined date.
US-Iran Tensions and Impact on Energy Supply
The US has declared it will maintain a blockade of Iranian ports as long as Tehran continues to threaten vessels attempting to transit the Strait of Hormuz, a move that severely disrupts global energy shipments.
In retaliation for US-Israeli airstrikes, Iran has threatened to attack ships passing through the waterway, which typically handles about one-fifth of the world's energy shipments.
Oil prices surged by 6% on Wednesday following reports that Washington is preparing for an "extended" blockade of Iran.
The BBC has also learned that energy industry executives met with President Trump on Tuesday to discuss strategies to mitigate the war's impact on US consumers. This meeting has heightened market concerns about a prolonged disruption to energy supplies.
