TOKYO: Brent crude oil soared more than seven percent on Thursday after a report said the US military would brief president Donald Trump on potential military action against Iran as talks to reopen the Strait of Hormuz stall.
The contract rose as much as 7.1% to US$126.41 per barrel in Asian trade, while West Texas Intermediate climbed 3.4% to US$110.31. Both later pared the gains.
Trump would receive the briefing from Admiral Brad Cooper, commander of US Central Command (Centcom), Axios reported, citing two unnamed sources with knowledge.
The briefing signals Trump is seriously considering resuming major combat operations either to try to break the logjam in negotiations or to deliver a final blow before ending the war, Axios reported.
It added that Centcom has prepared a plan for a “short and powerful” wave of strikes on Iran – likely including infrastructure targets – in hopes of breaking the negotiating deadlock.