Oil prices have soared following reports that the US is preparing for an ‘extended’ blockade of Iran.
Brent crude briefly hit $119 (£88) a barrel on Wednesday evening, the highest price so far this month and a rise of nearly 7% in one day.
The BBC understands that energy executives including Chevron chief executive Mike Wirth met 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 prolonged period of time.
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.