Oil prices surge to $115 as US signals ‘extended’ Iran blockade, report says

Oil prices have surged past $115 in the midst of circulating reports that the US is preparing for an “extended” blockade of Iran, further restricting global energy supply chains.

Brent crude climbed to around $115 a barrel on Wednesday. The day before, oil prices closed at just over $110.

The surge in prices follows reports from the Wall Street Journal, mentioning that President Donald Trump has given instructions to officials to prolong blockade of Iranian ports in the case of failure to reach an agreement.

According to Trump, Iran must get smart soon and sign a deal following the review of the Iran-proposed peace plan. As per US officials, Trump was dissatisfied with the proposal which stipulated to delay the negotiations over Iran’s nuclear programme.

In a post on Truth Social, Trump said the “country couldn't get its act together.”

Tehran has announced its intention to persist in disrupting maritime traffic through the Strait of Hormuz as a direct retaliation against the ongoing U.S. blockade.

Strait of Hormuz, a critical artery that typically facilitates the transit of 20 percent of the world’s oil and liquefied natural gas (LNG), has been effectively disrupted for weeks due to the escalating US-Israel conflict with Iran.

This prolonged closure has triggered volatile price fluctuations in the energy markets, keeping the cost of a barrel significantly higher than pre-war levels.

As per officials, extended blockade of Iranian ports will not only constrain Iran’s economy but also impact its exports of Iranian supplies. But Iranian officials negated US’ understanding of squeezing Iran’s economy as the country could withstand blockade by using alternative trade routes.

The prolonged conflict, ongoing since February 2026, will threaten energy supply chains in the long run. Even the World Bank also predicted that energy prices will surge by 24 percent in 2026 to their highest level since Russia's full-scale invasion of Ukraine.