Oil price soars to highest level since 2022 as US-Iran impasse shows no sign of resolution
The Guardian • • general
Key Points:
- Brent oil prices surged above $122 a barrel, reaching their highest level since 2022, driven by stalled US-Iran ceasefire talks and the effective closure of the Strait of Hormuz.
- The price spike followed a nearly 10% one-day increase, with Brent crude briefly topping $122 before settling around $120, a level not seen since Russia's 2022 invasion of Ukraine.
- US-Iran negotiations scheduled in Islamabad failed to proceed, while US President Donald Trump indicated willingness to maintain the US Navy blockade on Iranian ports, prompting Iran to keep the strait largely closed to oil tankers.
- Economic experts warn that a prolonged closure of the Strait of Hormuz could push oil prices as high as $190 per barrel by August and potentially trigger a global recession if the impasse lasts three months or more.
- The ongoing conflict and supply disruptions have contributed to rising global inflation and economic challenges, with the US experiencing a 3.3% annual inflation rate in March and the UK facing significant economic risks, including a potential recession by 2026.
