Oil Prices Jump to Highest Since 2022 on Iran War Fears
Oil prices jumped to their highest since 2022.
A Sharp Spike in Oil Prices
The reason is a report about potential US action in the Iran war. Brent crude rose by almost 7% at one point. It hit more than $126 a barrel before falling back.US Central Command has prepared a plan for new strikes. The plan involves “short and powerful” strikes on Iran. News site Axios reported the story. The goal is to break the deadlock in negotiations with Tehran. The BBC has contacted US Central Command and the White House for comment.
Peace Talks Stalled
Energy prices have been rising all week. Peace talks appear to have stalled. The key Strait of Hormuz waterway remains effectively closed. About 20% of the world’s oil and liquefied natural gas usually passes through the strait. The conflict has sent global energy prices soaring.
Prices Fell Back
Brent crude touched $126.31 a barrel earlier on Thursday. That was the highest since Russia’s full-scale invasion of Ukraine. However, the price then fell back sharply to around $114 later in the day.The sharp switch was partly blamed on a deadline for futures contracts. These are agreements to buy or sell an asset at a set date. The current Brent futures contract for June delivery expired on Thursday. That contributed to the drop, said Naveen Das, senior oil analyst at Kpler. The more active July contract was trading lower at around $110 a barrel.
