Oil prices have risen sharply following reports that the US is preparing for an "extended" blockade of Iran.
Points of attention
- Oil prices have surged after reports of the US planning an extended blockade of Iran, with Brent crude reaching around $115 a barrel.
- The US-Israeli war against Iran has led to a significant increase in oil prices, with the WTI contract rising more than 49% since February 28.
Oil prices have risen again: what is known
On April 29, the price of Brent crude oil rose to around $115 per barrel, while on Tuesday evening it closed at just above $110. Shortly before noon, the price fell slightly to $114.37.
US West Texas Intermediate crude futures for June delivery rose 3.3% to $103.18 a barrel. Overall, the WTI contract has risen more than 49% since the start of the US-Israeli war against Iran on February 28, CNBS writes.
This came after reports from the Wall Street Journal that US President Donald Trump had instructed his aides to prepare to extend the current blockade of Iranian ports to put pressure on the country's economy.
Since the start of the war, the price of oil has fluctuated wildly as the key Strait of Hormuz was effectively closed for several weeks due to the conflict.
Iran has severely restricted shipping through the strait — which normally carries about a fifth of the world's oil and liquefied natural gas — in response to US and Israeli strikes.
On April 17, the price of Brent crude oil fell to $90 per barrel after the announcement of a ceasefire between Israel and Lebanon.
The US said it would suspend attacks on Iran on April 8. However, the estimated price of oil has still been rising steadily over the past 12 days as the US continues to blockade Iranian ports. Iran, in turn, continues to impede shipping through the Strait of Hormuz in response to the US blockade.
