Brent crude jumped nearly 7 per cent to over $126 a barrel on Thursday after reports that the US military briefed President Donald Trump on new military options against Iran, the highest price the commodity has hit since Russia invaded Ukraine in 2022.
The Pentagon prepared plans for "short and powerful" strikes on Iran to break the stalemate in nuclear negotiations, according to news site Axios. Admiral Brad Cooper, commander of US Central Command, and General Dan Caine, chairman of the joint chiefs of staff, were expected to present the updated options to Trump as he pressures Tehran into agreeing to a deal on its nuclear programme.
Trump told reporters he wants the US naval blockade of Iranian ports to continue. "The blockade is genius," he said when asked about its duration. "Now, they have to cry uncle, that's all they have to do. Just say, 'We give up.'" His team has begun laying groundwork for a longer-term closure of the Strait of Hormuz, a key waterway through which about 20 per cent of the world's oil and liquefied natural gas passes.
Sources familiar with the matter said Trump has internally indicated he would prefer making a deal with Iran and avoiding further bombing campaigns. But the Pentagon has continued preparing for military action should the president change course. Peace talks have stalled this week, with the strait effectively closed, sending energy prices soaring across global markets.
The sharp oil price spike was partly driven by the expiration of the June Brent futures contract on Thursday. The more active July contract traded lower at around $110 a barrel. Naveen Das, senior oil analyst at Kpler, said the deadline for these agreements to buy or sell assets at set dates contributed to the dramatic swing.
Nigerians are feeling the squeeze at the pump. A litre of petrol now costs about N1,400, up from roughly N800 before the Iran conflict began on February 28. That represents a 75 per cent increase in just weeks. In the UK, petrol costs an average of 157p a litre, 24p higher than before the war started, while diesel sits at 188.5p per litre, up 46p from its pre-war price.
The UK government has warned citizens to expect higher energy bills, food costs, and airline fares. Some airlines have already raised fares or cut flights. Fertiliser prices are climbing as well, with potential knock-on effects for food prices globally.
Trump's strategy aims to inflict maximum economic pain on Iran in hopes the country will capitulate on nuclear demands. Pentagon officials will continue briefing the president on military options, though his stated preference remains a negotiated settlement over renewed kinetic action.
