What Donald Trump told his advisers about Iran that has oil prices surging

Global oil prices surged on Thursday after media reports said US President Donald Trump told advisers he wanted to maintain a naval blockade on Iran and potentially extend restrictions around the Strait of Hormuz.

Brent crude futures jumped to as high as $120 per barrel in early trade before easing slightly, while US West Texas Intermediate (WTI) also rose sharply.

According to CNN, Trump has in recent days told top advisers he wants the US blockade of Iranian ports to continue.

His team is reportedly laying the groundwork for a longer-term strategy that could include keeping the Strait of Hormuz effectively closed.

“The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon,” Trump told Axios in a phone interview on Wednesday.

Trump is pursuing a strategy to maximise economic pressure on Iran to force it back to negotiations over its nuclear programme, while avoiding an immediate return to large-scale military strikes, reported CNN, citing people familiar with the matter.

However, Axios reported that Trump is set to receive a briefing on Thursday from US Central Command chief Admiral Brad Cooper on options that include a “short and powerful” wave of strikes targeting Iranian infrastructure, as well as plans related to securing parts of the Strait of Hormuz to restore commercial shipping.

The report also suggested that the administration is also considering special forces operations targeting Iran’s stockpile of highly enriched uranium.

The reports come amid a protracted conflict that began on February 28 and has now stretched into its ninth week.

Trump suggested the war could drag on, telling CNN it might follow a timeline similar to the conflict in Ukraine.

Oil markets, already sensitive to disruptions in the Strait of Hormuz, reacted sharply to the prospect of an extended blockade and possible escalation.

Brent crude futures for June delivery were trading around $119.84 per barrel at 0704 IST, up about 1.5% from the previous close after hitting $120 earlier in the session, according to market data. US WTI crude futures were at about $107.20 per barrel.

Iran has proposed a phased approach to de-escalation, beginning with a ceasefire and guarantees against further US military action, followed by discussions on reopening the Strait of Hormuz and eventually addressing its nuclear programme, according to Iranian officials cited by Reuters.

Trump, however, has expressed dissatisfaction with the proposal, according to a New York Times report.

In a post on his Truth Social platform, Trump claimed Iran had told Washington it was in a “state of collapse” and wanted the Strait reopened quickly.