Oil prices surged to $115 a barrel amid reports of a potential extended US blockade of Iran. The blockade aims to impact Iran's economy and follows ongoing disruptions in the Strait of Hormuz due to conflict.
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Oil prices have climbed sharply following reports that the US is preparing for an 'extended' blockade of Iran.
Brent crude rose to around $115 (£85) a barrel on Wednesday, having closed at just over $110 (£81) on Tuesday evening. The price had fallen slightly to $114.37 (£84.68) just before midday BST.
It follows reports from the Wall Street Journal that US President Donald Trump has instructed aides to prepare to extend obstruction of Iran's ports, in an effort to squeeze the country's economy.
Iran has said it will continue to disrupt traffic travelling through the Strait of Hormuz in response to the US blockade.
The price of oil has seen sharp swings since the start of the US-Israel war with Iran as the key Strait of Hormuz - which usually carries about 20% of the global supplies of oil and liquid natural gas - has been effectively closed for weeks due to the conflict. It remains much higher than the pre-conflict price of a barrel.
The price of Brent crude dropped to $90 a barrel on 17 April, after a ceasefire between Israel and Lebanon was announced. The US said it would pause attacks on Iran on 8 April.
However, the oil benchmark has been rising steadily over the last 12 days, as the US continued its blockade.
On Wednesday, Trump urged Iran to 'get smart soon' and sign a deal, following days of deadlock in efforts to end the conflict.
In a post on Truth Social, Trump said the country 'couldn't get its act together.'
The Wall Street Journal cited US officials as saying the president had instructed aides to prepare for an extended blockade of Iran's ports in a bid to force Tehran's hand.
Officials said Trump had opted to continue squeezing Iran's economy and oil exports with the blockade as his other options - resuming bombing or walking away from the conflict - carried more risk, according to the report.
Iranian officials said on Tuesday the country could withstand the blockade as it was using alternative trade routes.
The World Bank on Tuesday forecast energy prices would surge by 24% in 2026 to their highest level since Russia's full-scale invasion of Ukraine four years ago, if the most acute disruptions caused by the Iran war end in May.
The spike in oil prices to $115 was caused by reports of the US preparing for an extended blockade of Iran.
Iran has stated it will continue to disrupt traffic in the Strait of Hormuz in response to the US blockade.
The Strait of Hormuz is crucial as it carries about 20% of the global supplies of oil and liquid natural gas.
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