Oil prices have surged to around $115 a barrel after reports that the United States is preparing for an extended blockade of Iran. Brent crude rose sharply from just over $110, continuing a steady climb in recent days amid escalating tensions.

The reported move follows instructions from President Donald Trump to prepare for prolonging the obstruction of Iran's ports in an effort to pressure the country economically. Iran has responded by saying it will continue disrupting traffic through the Strait of Hormuz, a critical route that carries about 20% of global oil and liquefied natural gas supplies.

Energy markets have experienced sharp swings since the conflict involving Israel and Iran began, with the Strait of Hormuz effectively closed for weeks. Although prices briefly fell after a ceasefire between Israel and Lebanon and a pause in attacks on Iran, they have risen again as the blockade continues.

The World Bank has warned that energy prices could rise by 24% in 2026 if severe disruptions linked to the conflict persist, potentially reaching their highest levels since Russia's full-scale invasion of Ukraine four years ago.