Oil price briefly hits $120 after reports of 'extended' Iran blockade

5 minutes agoNaomi Rainey,Emer MoreauandJonathan Josephs,Business reportersGetty ImagesCrude oil is a key ingredient in petrol and dieselOil prices have soared following reports that the US is preparing for an "extended" blockade of Iran.The global benchmark oil price, Brent crude, briefly hit $120 (£88) a barrel on Wednesday evening, its highest price since 2022.The BBC understands that energy executives including Chevron chief executive Mike Wirth met US President Donald Trump at the White House on Tuesday to discuss how to limit the fallout from the conflict on American consumers.Oil traders appear to have taken the meeting as a sign the effective closure of the Strait of Hormuz will continue for a long time.The executives discussed topics including domestic energy production, progress in Venezuela, oil futures, natural gas, and shipping, according to a White House official.They described the meeting as being part of the President's regular meetings with energy executives to discuss their industry.The meeting follows separate reports from the Wall Street Journal that US President Donald Trump has instructed aides to prepare to extend the ongoing blockade of Iran's ports, in an effort to squeeze the country's economy.Iran has said it will continue to disrupt traffic travelling through the Strait of Hormuz in response to the US blockade. The price of oil has seen sharp swings since the start of the war, as the key Strait of Hormuz has been effectively closed for weeks due to the conflict. Iran has severely restricted shipping through the strait — which usually carries about a fifth of the world's supply of oil and liquid natural gas — in response to US and Israeli strikes that began on 28 February.Earlier this month, Tehran warned that any vessel that approaches the strait would be targeted.The US then announced that its forces would intercept or turn back vessels travelling to or from Iran's ports.Analysis by BBC Verify shows that at least four vessels tracked from Iranian ports appear to have crossed the US blockade line.Despite the fluctuations of recent weeks, the price of oil remains much higher than the pre-conflict price of a barrel.The price of Brent crude dropped to $90 a barrel on 17 April, after a ceasefire between Israel and Lebanon was announced. The US said it would pause attacks on Iran on 8 April. It remains much higher than the pre-conflict price of a barrel.However, the oil benchmark has been rising steadily over the last 12 days, as the US continued its blockade.Lindsay James, investment strategist at Quilter, said that the impact of the war so far in the UK has been largely limited to higher petrol and diesel prices, but "every day that passes without a resumption of supply sees the risk of physical shortages and steeper price rises on a range of goods increasing".The Iranian economy is facing a deepening crisis, with rapidly rising prices, falling currency value, and prospects of the oil exports grinding to a halt.According to the Statistical Center of Iran, the annual inflation rate has risen to 53.7%. The country's currency, the rial, has fallen to a record low.Around two million Iranians have lost their jobs, directly or indirectly, as a result of the war, the Iranian government had said last week.On Wednesday, Trump urged Iran to "get smart soon" and sign a deal, following days of deadlock in efforts to end the conflict.In a post on Truth Social, Trump said the country "couldn't get its act together".The Wall Street Journal cited US officials as saying the president had instructed aides to prepare for an "extended" blockade of Iran's ports in a bid to force Tehran's hand.Officials said Trump had opted to continue squeezing Iran's economy and oil exports with the blockade as his other options - resuming bombing or walking away from the conflict - carried more risk, according to the report.Iranian officials said on Tuesday the country could withstand the blockade as it was using alternative trade routes