BBC: Oil price rises above $120 after reports of 'extended' Iran blockade
Oil prices have soared following reports that the US is preparing for an "extended" blockade of Iran.
The global benchmark oil price, Brent crude, rose above $120 (£89) a barrel on Wednesday, briefly hitting $122, its highest price since 2022.
The BBC understands that energy executives including Chevron chief executive Mike Wirth met US President Donald Trump at the White House on Tuesday to discuss how to limit the fallout from the conflict on American consumers.
Oil traders appear to have taken the meeting as a sign the effective closure of the Strait of Hormuz will continue for a long time.
The executives discussed topics including domestic energy production, progress in Venezuela, oil futures, natural gas, and shipping, according to a White House official.
They described the meeting as being part of the President's regular meetings with energy executives to discuss their industry.
The meeting follows separate reports from the Wall Street Journal that US President Donald Trump has instructed aides to prepare to extend the ongoing blockade 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.
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Despite the fluctuations of recent weeks, the price of oil 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. It remains much higher than the pre-conflict price of a barrel.
However, the oil benchmark has been rising steadily over the last 12 days, as the US continued its blockade.
Lindsay James, investment strategist at Quilter, said that the impact of the war so far in the UK has been largely limited to higher petrol and diesel prices, but "every day that passes without a resumption of supply sees the risk of physical shortages and steeper price rises on a range of goods increasing".
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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.
Oil price rises above $120 after reports of 'extended' Iran blockade
byu/mastertofu instocks
Posted by mastertofu
11 Comments
And the yields afterhours shit the bed. Calls?
It really is like watching COVID all over again
Already crashed to $110
Russia making bank on their newly lifted oil sanctions thanks to don chomo.
Lol when it all began, this sub laughed at a guy when he said wait until you see $120.
How do I long oil other than futes I hv a small account
YODA!
But the Dow.
SPX closed within $50 of all time high. I get how Wall Street is irrational and disconnected from Main Street but no way it can be projecting we get out of this unsaved. Goes to show how AI is 1999 all over again.
I don’t care since gas, housing, and groceries are so cheap! And my salary is so good! And my job is so secure!
😐
That’s ok because spy is about to break all time highs after hours again. Everything is alright as long as spy hits all time highs again and again and again.