Brent crude oil prices have topped $120 per barrel as the US prepares for an extended naval blockade of Iran. The prices, which nearly breached $123 per barrel for a brief period on Wednesday, have now settled at $120 per barrel – its highest level since the Russia-Ukraine war began in 2022.
According to sources, US energy executives, including Chevron chief executive Mike Wirth, met with President Donald Trump to discuss reducing the fallout and impact on American consumers.
Oil traders are also concerned as the closure of the Strait of Hormuz is set to trigger a global energy crisis, with many nations now entering a phase of exhausting their critical oil reserves.
Several Asian countries, including India, Japan, South Korea, and Australia, are facing the brunt of the blockade. The fuel shortages have also triggered economic uncertainty due to disruptions in supply chains.
Meanwhile, the executives discussed topics including domestic energy production, progress in Venezuela, oil futures, natural gas, and shipping, according to a White House official.
Besides the United States, Iran has also said it will continue to halt supplies and disrupt traffic through the Strait of Hormuz in response to the naval blockade.
The oil prices have fluctuated immensely during the ongoing war between Iran and the United States.
According to some estimates, prices have climbed more than 60 per cent since the war began.
The price of Brent crude dropped to $90 a barrel on 17 April after a ceasefire between Israel and Lebanon was announced.
The US said it would pause attacks on Iran on 8 April. However, prices remain much higher than the pre-conflict level.
Follow us
