Brent oil rallied to a wartime high after Axios reported that US President Donald Trump is set to receive a briefing on new military options for action in Iran, signaling the potential for fresh escalation in the Middle East.
The global benchmark surged above US$124 ($174.20) a barrel to the highest intraday level since June 2022, while West Texas Intermediate traded near US$109 ($153.13). US Central Command’s Admiral Brad Cooper will meet Trump on Thursday, signaling a resumption of combat operations are seriously under consideration, according to the Axios report, which cited two unnamed people.
Brent oil rallied to a wartime high.Getty Images
The US military has asked for hypersonic missiles to be sent to the Middle East, which would mark the first time the country has deployed those weapons. Trump earlier told Axios that he would not lift a naval blockade on Iranian ports until he secures a nuclear deal with Tehran, while the administration is also seeking the forfeiture of two Iran-linked oil tankers that were seized by naval forces.
The Strait of Hormuz has been effectively closed since the war started at the end of February, choking off flows of crude, natural gas and oil products, and driving up energy prices. On Tuesday, Trump discussed steps the US could take to prolong its blockade while minimizing the impact on American consumers at a meeting with oil and trading executives, the White House said.
Bloomberg.