Oil price hits highest since 2022 after report Trump to be briefed on new Iran options

Source: BBC

Oil prices jumped to their highest level since 2022 after a report that the US military is set to brief President Donald Trump on new plans for potential action in the Iran war. Brent crude rose by almost 7% to more than $126 (£94) a barrel at one point, before falling back.

US Central Command has prepared a plan for a wave of "short and powerful" strikes on Iran to try to break the deadlock in negotiations with Tehran, news site Axios reported. The BBC has contacted US Central Command and the White House for comment. Energy prices have been rising this week as peace talks appear to have stalled, with the key Strait of Hormuz waterway still effectively closed.

About 20% of the world's oil and liquefied natural gas (LNG) usually passes through the strait and the conflict has sent global energy prices soaring. Brent crude touched $126.31 a barrel earlier on Thursday, the highest since Russia's full-scale invasion of Ukraine. However, the price then fell back sharply later in the day to around $114.

The sharp switch in the oil price was partly being blamed on a deadline for deals known as futures contracts, which are agreements to buy or sell an asset at a set date. The current Brent futures contract for June delivery expired on Thursday, which contributed to its drop, said Naveen Das, senior oil analyst at Kpler. The more active July contract was trading lower at around $110 a barrel.

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