Oil prices continued to increase Wednesday on reports that US President Donald Trump has instructed his advisers to prepare for a longer-term naval blockade targeting Iranian ports.
International benchmark Brent crude traded at $109.68 per barrel at 4.42 p.m. local time (1342 GMT), up around 5% from the previous close of $104.4.
US benchmark West Texas Intermediate also increased about 5% to $104.91 per barrel, compared with $99.93 in the previous session.
According to The Wall Street Journal, citing US officials familiar with the matter, Trump has decided to keep pressure on Iran by targeting its oil revenues and broader economic resources to force Tehran to scale back its nuclear program.
Officials said Trump had instructed his advisers to prepare for a prolonged blockade to pressure Iran into accepting nuclear concessions it has long resisted.
Officials added that Trump views resuming airstrikes or withdrawing from the conflict as riskier options than maintaining the blockade, and has opted in recent discussions to sustain pressure on Iran's oil exports by restricting maritime traffic to its ports.
The report said some figures close to Trump had urged maintaining pressure on Tehran, while others warned that closing the Strait of Hormuz or escalating the conflict could pose significant economic and political risks.
Iran's Revolutionary Guard Corps announced on March 2 that the Strait of Hormuz had been closed to transit following US-Israel strikes on Feb. 28.
The disruption to maritime traffic for more than eight weeks has heightened supply concerns in global markets and reinforced expectations that the crisis could be prolonged, supporting upward pressure on prices.
The United Nations said ship transits through the Strait of Hormuz have fallen by 95.3% since the start of the conflict due to restrictions in the waterway.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
