Crude oil soared to its highest level since 2022 amid reports that the U.S. is considering new attacks on Iran and President Donald Trump’s warning that his blockade of Iranian ports could last months.

The surge in prices on Wednesday and Thursday ended any hope that the Strait of Hormuz would reopen soon, triggering concerns from some economists that the crippling cost for hydrocarbons could plunge the world into recession.

In early London trading, Brent crude, the international benchmark, hit US$126 a barrel before falling back to US$123 – up 5 per cent over Tuesday’s close. The two-day rally has lifted prices by about 13 per cent.

Hormuz, through which 20 per cent of the world’s oil and liquefied natural gas (LNG) shipments pass, has been almost totally closed since Feb. 28, when the U.S. and Israel began their bombing campaign against Iran. The Islamic Republic in response mined the strait and attacked some ships, preventing all but a few tankers from reaching the Indian Ocean.

Sporadic peace talks since then have gone nowhere. A ceasefire has been in place since April 8.