Oil prices hit four-year high as US-Iran tensions escalate

Global oil prices have surged to their highest level since 2022 amid rising military tensions between the United States and Iran.

Brent crude, the international benchmark, briefly jumped nearly 7 per cent to above $126 a barrel on Thursday, April 30, before paring some gains . The sharp increase followed reports that the US military is preparing to brief President Donald Trump on potential new military action against Iran.

The ongoing conflict in the Middle East and a stalemate in diplomatic negotiations are seen as the primary drivers of the price rally.

According to Axios, the US Central Command has developed a plan for "short but powerful" strikes targeting Iran's critical infrastructure . The plan also reportedly includes securing a portion of the strategically vital Strait of Hormuz to reopen the waterway to commercial shipping.

The Strait of Hormuz is a key chokepoint, through which about 20 per cent of the world's oil and liquefied natural gas passes . The effective closure of this route has created significant pressure on global energy supplies.

In the UK, the average price of petrol has reached 157 pence per litre, up 24 pence from before the conflict began . Analysts warn that the situation will drive up transportation costs as well as food, electricity, and airfares.