Oil prices hit $126: Highest levels since 2022 as US-Iran tensions escalate

Oil prices increased in Asia following reports that the US military is set to brief President Donald Trump on new plans for proposed measures in the conflict with Iran. Prices jumped nearly 7% to over $126 a barrel, reaching their highest levels since the 2022 invasion of Ukraine.

US-traded oil rose by 2.3% to approximately $109 a barrel. This follows a 6% surge on Wednesday, driven by fears of a long-term blockade and stalled peace talks. 

Relatedly, US Central Command has been preparing a plan for a wave of “short and powerful” strikes on Iran-a move aimed at resolving the impasse in negotiations with Tehran.

Proposed plans also include the potential for ground troops to take control of parts of the Strait of Hormuz to ensure it remains open for commercial shipping. Brent crude jumped nearly 7% to over $126 a barrel, its highest point since the 2022 invasion of Ukraine. 

Reports additionally indicate the US military is briefing leadership on potential short-and-powerful strikes against Iranian infrastructure.

A critical waterway for 20% of global energy is effectively closed; the US is considering deploying ground troops to reopen it while Iran threatens to attack ships. 

Given the gravity of the situation, peace talks have stalled, leading the US to prepare for an “extended” blockade of Iranian ports. Oil prices have soared by 6% following these reports. 

Furthermore, concerns about long-term supply disruptions have heightened after energy executives met with US leadership to discuss ways to mitigate the war’s impact on consumers and prevent prolonged energy shortages.