Oil prices jumped sharply in Asia on Thursday following reports that the US military is set to brief President Donald Trump on new plans for potential action against Iran.

US Central Command has prepared a plan for a wave of 'short and powerful' strikes on Iran aimed at breaking the deadlock in negotiations with Tehran, news site Axios reported. The BBC has contacted US Central Command and the White House for comment.

Brent crude rose by almost 7% to more than $126 a barrel, the highest level since Russia's full-scale invasion of Ukraine in 2022. Energy prices have risen this week as peace talks appeared to have stalled, with the key Strait of Hormuz waterway remaining effectively closed.

The Axios report cited anonymous sources saying the proposed wave of strikes would likely include infrastructure targets. Another plan focused on taking over part of the Strait of Hormuz so that it can be reopened for commercial shipping, potentially involving troops on the ground.

US-traded West Texas Intermediate crude oil also rose, up by 2.3% at around $109 a barrel. The US said it would blockade Iranian ports for as long as Tehran continues to threaten vessels that try to use the Strait of Hormuz, severely disrupting global energy shipments.

Iran retaliated against US-Israeli airstrikes by threatening to attack ships in the waterway, through which about a fifth of the world's energy usually passes. Oil prices surged by 6% on Wednesday following reports that Washington is preparing for an 'extended' blockade of Iran.

The BBC also understands that energy executives met Trump on Tuesday to discuss ways to limit the impact of the war on US consumers, fuelling concerns in the market about an extended disruption to energy supplies.

Source: www.bbc.com