Oil Prices Surge After US Military Prepares Iran Strike Options for President Trump
Oil prices saw a significant rise on Thursday in Asia, climbing to their highest point since Russia's 2022 invasion of Ukraine. This surge followed reports that US Central Command has drafted plans for potential military action against Iran, intended for a briefing with President Donald Trump.
According to news outlet Axios, citing anonymous sources, the proposed plans include a wave of "short and powerful" strikes on Iran. These strikes are reportedly designed to break the current impasse in negotiations with Tehran and could target infrastructure. Another option discussed involves seizing control of a portion of the Strait of Hormuz to facilitate the reopening of commercial shipping, a move that might necessitate ground troops.
Brent crude, the international benchmark, increased by nearly 7% to over GBP#126 a barrel. US-traded West Texas Intermediate crude oil also saw an uplift, rising by 2.3% to approximately GBP#109 a barrel.
The current conflict began on 28 February with wide-ranging strikes by the United States and Israel on Iran, resulting in the death of Iran's Supreme Leader and hundreds of civilians, including 110 children at an Iranian primary school. The US has since threatened to blockade Iranian ports if Tehran continues to disrupt shipping in the Strait of Hormuz. Iran, in turn, has threatened to target vessels in the waterway, which is critical for approximately one-fifth of global energy shipments.
This week's escalating energy prices coincide with stalled peace talks and the effective closure of the Strait of Hormuz. The International Criminal Court has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defence Minister Yoav Gallant for alleged war crimes and crimes against humanity in Gaza. The International Court of Justice is also currently hearing genocide proceedings against Israel, brought by South Africa.
