Donald Trump has held discussions with oil company executives on ways to mitigate the impact of a US blockade of Iranian ports that could last several months, according to a White House official. This prospect, coupled with reports of potential military strikes against Iran, propelled June Brent crude to around $125, its highest level since March 2022.

The US President is scheduled to be briefed Thursday by Central Command chief Brad Cooper on new military scenarios involving "short and powerful" strikes targeting Iranian infrastructure, Axios reports. On his Truth Social network, Donald Trump urged Tehran to act "smartly, and fast" by reaching a nuclear deal. In response, Iran threatened "unprecedented military action" should the United States continue to block vessels linked to the country.

On the economic and diplomatic fronts, repercussions are mounting. Brent briefly climbed above $126 around 5am, before falling back to around $121 later in the morning. US West Texas Intermediate (WTI) is approaching $110. The US continues to push for the formation of an international coalition to secure the Strait of Hormuz.

In equity markets, the oil rally is currently overshadowing the release of reassuring earnings from several technology heavyweights.