Oil prices jumped to their highest since 2022 after a report that the US military is set to brief President Donald Trump on updated plans for potential action in the Iran war.

US Central Command has prepared a plan for a wave of “short and powerful” strikes on Iran to try to break 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 (£94) a barrel at one point, the highest since Russia’s full-scale invasion of Ukraine.

Energy prices have risen this week as peace talks appear to have stalled, with the key Strait of Hormuz waterway still effectively closed.

After reaching $126.31 a barrel in Asian trade, the price of Brent crude fell back to around $116 in European trade.

Crude oil is a key ingredient in petrol and diesel, and the jump in costs since the start of the Iran war has pushed up pump prices for motorists. This also touches on aspects of foreign policy.

In the UK, petrol currently costs an average of 157p a litre, which is 24p higher than before the start of the war. Diesel is at 188.5p a litre, up 46p compared with its pre, according to motoring group RAC-war price.

RAC head of policy Simon Williams noted that while the price of petrol at the pumps has fallen, “our analysis of wholesale costs shows petrol is now more expensive for retailers to procure than at any time since the war began”.

“However diesel, which has come down by 3p a litre, is currently well below its highest wholesale price since the start of the conflict, so should fall further.”

He added that this shift in trends was partly due to the time of year.

“The marketplace for petrol tends to boost in the spring as the public in the US begin to drive more, whereas the price of diesel often reduces as Western Europe’s employ of heating oil, which is made from the same part of the barrel, lessens as the temperature warms up.”

But the potential impact is wider than just petrol and diesel prices. The UK government has warned individuals could face higher energy, food and flight ticket prices Because of the war.

Some airlines have already started to raise fares or reduce flights. Fertiliser prices have also started to expansion, which could have a knock-on effect on food prices.

The Axios report cited anonymous sources, saying the proposed wave of strikes would be likely to include infrastructure targets.

Another plan focused on taking over part of the Strait of Hormuz so that it can be reopened for commercial shipping, Axios reported, adding that doing so could involve troops on the ground.

Meanwhile, a statement attributed to Iran’s Supreme Leader Mojtaba Khamanei remarked that Tehran would secure the Strait of Hormuz and eliminate “the enemy’s abuses of the waterway”.

Khamanei’s statement on Thursday also mentioned a “new chapter” for the region had been taking shape since the start of the US-Israeli war with Iran on 28 February.

The current Brent futures contract for June delivery is due to expire on Thursday. The more active July contract was trading at around $110 a barrel.

Futures contracts are agreements to purchase or auction an asset at a set date.

The US noted it would blockade Iranian ports for as long as Tehran continues to threaten vessels that try to employ 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 had surged by 6% on Wednesday following reports that Washington was preparing for an “extended” blockade of Iran.

“It does seem as though escalation in the war is back on the table, be it in the guise of the US continuing its blockade in Iran, but also reports and rumours that To get out of this bind, Iran may start to strike again,” commented Naveen Das, senior oil analyst at Kpler.

He told the BBC’s Today programme an oil price approaching $125 is the point where businesses and politicians “start to get a bit more jittery”.

“We might start seeing maybe more headlines of trying to de-escalate again,” he added, because the surge in prices “has a knock-on effect not only on oil, but oil-related products, inflation and basically every factor of our day-to-day lives”.

Susannah Streeter, chief investment strategist at Wealth Club, remarked costs could remain high into next year.

“Urea shipments, used for fertiliser, are blocked and costs have rocketed for farmers around the globe, who didn’t procure stocks in advance.

“The worry is that all these costs will be passed on through supply chains, pushing up the price of everyday goods, later in the year and into next year.”

The BBC 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 marketplace about an extended disruption to energy supplies.

“The substantial question in my mind is how long the Trump administration can stand the economic heat,” Will Walker-Arnott, investment manager at Raymond James, told the Today programme.

“People are really beginning to worry about the inflationary impact coming through from the rise in the oil price”, he added.

Stock markets in Asia closed lower, with Japan’s Nikkei down 1.1% and South Korea’s Kospi closing 1.4% lower.

In Europe, London’s FTSE 100 rose 1%, Germany’s Dax was up 0.3% while France’s Cac fell 0.6%.

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