Global oil prices spiked more than 7% on Thursday to a four-year high following a report that United States President Donald Trump was planning for an extended US blockade of Iranian ports, AFP reported.
The benchmark Brent crude had touched $126.4 per barrel before falling marginally to $124 per barrel as of 12 pm Indian time. The price of Brent was $78 per barrel on February 27, a day before the conflict started.
Trump has instructed US officials to prepare for an extended blockade to put pressure on Iranian exports and force Tehran to reach a peace deal, The Wall Street Journal had reported on Tuesday.
The uncertainty had led global oil prices to jump more than 3% to $114.8 per barrel on Wednesday.
This came as the United States military had prepared a plan for “short and powerful” strikes in Iran to break the deadlock in negotiations, Axios quoted three unidentified US officials as saying on Wednesday.
The US and Israel launched an attack on Iran on February 28, claiming that Tehran’s action posed an existential threat to Israel. Washington acts as a guarantor of Israel’s security.
Iran retaliated by striking US military bases in the region and Israel, and targeted major cities in Gulf countries and some ships.
Iran has also effectively blocked the Strait of Hormuz since the war broke out on February 28. About 20% of the global petroleum supply passes through the maritime chokepoint.
India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the Strait of Hormuz.
On April 17, Iran reopened the strait to commercial vessels after a 10-day ceasefire between Israel and Iran-backed militant group Hezbollah in Lebanon. A day later, however, Tehran said it was reimposing strict military controls on the waterway, alleging “repeated breaches of trust” by the US.
On April 13, Washington began blockading Iranian ports to mount economic pressure on Tehran.
The developments come amid continuing uncertainty over whether fresh talks between Iran and the US will take place. An initial round of peace talks between Iran and the US in Islamabad collapsed on April 12.
You’ve read Scroll.
Now help sustain it
Scroll is funded by readers, not corporate owners. If you believe our work matters, support our newsroom. Become a member today!
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!