Oil price jumps to $117 after reports of 'extended' Iran blockade Oil prices have continued to rise following reports that the US is preparing for an 'extended' blockade of Iran. Brent crude rose to about $117 (£86.71) a barrel on Wednesday afternoon, the highest price so far this month, having closed at just over $110 (£81) on Tuesday evening. It follows 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. The price of oil has seen sharp swings since the start of the war, as the key Strait of Hormuz has been effectively closed for weeks due to the conflict. Iran has severely restricted shipping through the strait — which usually carries about a fifth of the world's supply of oil and liquid natural gas — in response to US and Israeli strikes that began on 28 February. Earlier this month, Tehran warned that any vessel that approaches the strait would be targeted. The US then announced that its forces would intercept or turn back vessels travelling to or from Iran's ports. Analysis by BBC Verify shows that at least four vessels tracked from Iranian ports appear to have crossed the US blockade line. 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". The Iranian economy is facing a deepening crisis, with rapidly rising prices, falling currency value, and prospects of the oil exports grinding to a halt. According to the Statistical Center of Iran, the annual inflation rate has risen to 53.7%. The country's currency, the rial, has fallen to a record low. Around two million Iranians have lost their jobs, directly or indirectly, as a result of the war, the Iranian government had said last week. 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. European stocks fell on Wednesday, as investors digested a wave of corporate earnings and awaited the US Federal Reserve's latest interest rate decision. The FTSE 100 fell 0.73%, while the pan-European Stoxx index was down 0.4% at midday. France's Cac was down 0.44% and Germany's Dax fell marginally. In the US, the Nasdaq opened marginally down 0.25%. The S&P was 0.15% down on opening. Asian stock markets mostly rose Wednesday, continuing their recovery after being particularly hard hit by the initial shock from the war. Additional reporting by Behrang Tajdin
Oil price jumps to $117 after reports of 'extended' Iran blockade Oil prices have continued to rise following reports that the US is preparing for an 'extended' blockade of Iran. Brent crude rose to about $117 (£86.71) a barrel on Wednesday afternoon, the highest price so far thi…
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.
A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.
Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.
But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.
A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.
The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.
Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.
47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.