Oil prices surge to highest since 2022 amid reports of US plans for Iran strikes

Oil prices have jumped to their highest since 2022 after a report that the US military is set to brief President Donald Trump on new plans for potential action in the Iran war. US Central Command has prepared a plan for a wave of "short and powerful" strikes on Iran to try to break the deadlock in negotiations with Tehran, news site Axios reported. The BBC has contacted US Central Command and the White House for comment. Brent crude rose by almost 7% to more than $126 (£94) a barrel, the highest level since Russia's full-scale invasion of Ukraine. Energy prices have risen this week as peace talks appeared to have stalled, with the key Strait of Hormuz waterway remaining effectively closed. The Axios report cited anonymous sources, saying the proposed wave of strikes would be likely to include infrastructure targets. Another plan focused on taking over part of the Strait of Hormuz so that it can be reopened for commercial shipping, Axios reported, adding that doing so could involve troops on the ground. US-traded West Texas Intermediate crude oil also rose, up by 2.3% at around $109 a barrel. The current Brent futures contract for June delivery is due to expire on Thursday. The more active July contract was up by about 2% at around $113 in morning trade in Asia. Oil traders have reacted quickly to the possibility of further military action in the Gulf, economics professor Yeow Hwee Chua from the Nanyang Technological University said. Even a small chance of the conflict escalating could have "outsized implications" on global energy supplies, he added. The US said it would blockade Iranian ports for as long as Tehran continues to threaten vessels that try to use the Strait of Hormuz, severely disrupting global energy shipments. Iran retaliated against US-Israeli airstrikes by threatening to attack ships in the waterway, through which about a fifth of the world's energy usually passes. Oil prices surged by 6% on Wednesday following reports that Washington was preparing for an "extended" blockade of Iran. The BBC also understands that energy executives met Trump on Tuesday to discuss ways to limit the impact of the war on US consumers, fuelling concerns in the market about an extended disruption to energy supplies. "The big question in my mind is how long the Trump administration can stand the economic heat," Will Walker-Arnott, investment manager at Raymond James, told the BBC's Today programme.