Oil prices surged to their highest level since 2022 following reports that Donald Trump is set to receive new military options on the ongoing Iran conflict.
According to reports, the US Central Command has prepared plans for possible “short and powerful” strikes aimed at pressuring Iran and breaking the current deadlock in negotiations.
The development has heightened fears of further escalation in the crisis.
Global benchmark Brent crude jumped by nearly 7%, briefly climbing above $126 per barrel, its highest level since the Russian invasion of Ukraine, before easing to around $116 in later trading.
The surge is largely driven by continued disruption around the Strait of Hormuz, a critical route that carries about a fifth of the world’s oil supply.
The waterway remains effectively closed as tensions between the US and Iran intensify.
Rising crude prices are already pushing up the cost of petrol and diesel globally, with wider effects expected.
Analysts warn that higher fuel costs could lead to increased prices for food, energy, and air travel, as supply chains face growing pressure.
There are also concerns about fertiliser shortages, as shipments of urea have been disrupted, potentially driving up food prices in the coming months.
Market experts say oil prices nearing $125 per barrel often trigger economic anxiety, as inflation risks grow and businesses face higher operating costs.
Some analysts believe the price spike could push policymakers to seek de-escalation in the conflict.
Meanwhile, stock markets showed mixed reactions, with Asian markets closing lower while European indices posted modest gains.
The situation remains fluid, with investors closely watching developments in the US–Iran standoff and any potential impact on global energy supplies.
