Oil Surges to $126 as US Weighs New Iran Strikes; Blockade Standoff Intensifies

Oil prices hit their highest since 2022, with Brent crude reaching $126.31 a barrel, after reports that US Central Command has prepared plans for "short and powerful" strikes on Iran to break the negotiating deadlock. President Donald Trump is set to be briefed on new military options, though he has also stated the naval blockade is "somewhat more effective than the bombing." Iran is reportedly examining "non-negotiated options" to lift the blockade, including potential attacks on the US Navy. The Strait of Hormuz closure has slashed daily transits from 125-140 to around 13-14, with Iranian vessels dominating the limited traffic. UK petrol prices have risen 24p per litre since the war began, and the UK government warns of higher energy, food, and flight costs. US intelligence agencies are studying Iran's likely response to a unilateral US victory declaration, amid concerns over midterm election losses. The CIA denied a Reuters report on its assessment, while the Office of the Director of National Intelligence declined comment. Iran has alternative export routes via rail to China, through Pakistan, and across the Caspian Sea to Russia, but shipowners remain wary of transiting even under Iranian escort. The human cost is rising, with potential starvation in poor countries if the blockade persists.