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Global oil prices have jumped sharply following reports that the United States is preparing for a prolonged blockade of Iran.
The international benchmark, Brent crude, climbed above $120 per barrel on Wednesday, briefly reaching $122 — its highest level since 2022.
According to reports, senior energy executives, including Mike Wirth of Chevron, met with Donald Trump at the White House on April 28 to discuss strategies to cushion American consumers from the impact of the crisis.
Market analysts interpret the meeting as a signal that disruptions in the Strait of Hormuz — a key global oil transit route — could persist for an extended period.
The talks reportedly covered domestic energy supply, developments in Venezuela, natural gas, oil futures, and shipping logistics. Officials described the meeting as part of ongoing consultations between the administration and industry leaders.
Meanwhile, reports indicate that President Trump has directed aides to prepare for a longer blockade of Iranian ports in a bid to intensify economic pressure on Tehran.
In response, Iran has continued to interfere with shipping through the Strait of Hormuz, a passage that typically handles about 20% of the world’s oil and liquefied natural gas. The disruption follows US and Israeli strikes that began on February 28.
Tehran has warned that vessels approaching the strait could be targeted, while US forces have pledged to intercept ships linked to Iran. Despite these restrictions, some vessels have reportedly managed to cross the blockade.
Oil prices have remained volatile since the conflict began, with temporary declines — such as a drop to $90 per barrel in mid-April following a ceasefire announcement — giving way to renewed increases as tensions persist.
Analysts warn that continued supply disruptions could lead to physical shortages and higher costs for fuel and goods globally.
The conflict is also taking a heavy toll on Iran’s economy. Inflation has surged above 50%, the national currency has weakened to record lows, and millions of jobs have been affected.
President Trump has urged Iran to reach an agreement, warning that continued deadlock could worsen the situation. Reports suggest the US is prioritising economic pressure through the blockade rather than escalating military action.
Looking ahead, the World Bank has projected that energy prices could rise by as much as 24% in 2026 if supply disruptions continue.
Financial markets have reacted cautiously, with European stocks declining while US markets remained largely flat. Analysts say investors are now factoring in the likelihood of a prolonged standoff and its broader economic impact.
