Oil prices have soared above $118 following reports that the US is preparing for an ‘extended’ blockade of Iran.
The price of oil has seen sharp swings since the start of the war between Israel and the US against Iran, as the key Strait of Hormuz has been effectively closed for weeks due to the conflict.
According to reports, Brent crude briefly hit $119 (£88) a barrel on Wednesday evening, the highest price so far this month, representing a rise of nearly 7% in one day.
It is understood that energy executives, including Chevron chief executive Mike Wirth, met President Donald Trump at the White House on Tuesday to discuss how to limit the fallout from the conflict on American consumers.
According to a White House official, the executives discussed topics including domestic energy production, progress in Venezuela, oil futures, natural gas, and shipping.
Oil traders appear to have taken the meeting as a sign that the effective closure of the Strait of Hormuz will continue for a prolonged period.
Iran has severely restricted shipping through the Strait in response to US and Israeli strikes that began on February 28.
Earlier this month, Tehran warned that any vessel that approaches the strait would be targeted.
