Prices of oil skyrocketed yesterday over reports that the United States (US) is preparing for an ‘extended’ blockade of Iran as deadlocked US-Iran negotiations made investors more concerned about prolonged closure.

The British Broadcasting Corporation (BBC) reported that global benchmark, Brent crude, hit $119 a barrel, the highest price so far this month and a rise of nearly seven per cent in one day; while Reuters reported that the United States (US) West Texas Intermediate futures for June rose $6.34, or 6.3 per cent,to trade at $105.19 a barrel, the highest since April 13.

Another reason given for the oil prices’ rise is the announcement by the United Arab Emirate (UAE) that it will pull out from the Organisation of Petroleum Exporting Countries (OPEC) starting May 1 after reflecting on its “long-term strategic and economic vision, so as to focus on “national interests.”

The Organisation of the Petroleum Exporting Countries and allies, including Russia, known as OPEC+, last year produced nearly 50% of the world’s oil and oil liquids, according to International Energy Agency estimates.

According to BBC energy executives including Chevron Chief Executive, Mike Wirth had met US President Donald Trump at the White House to discuss how to limit the fallout from the conflict on American consumers.

It stated that 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. It also added that the Wall Street Journal had reported that Trump has instructed aides to prepare to extend the ongoing blockade of Iran’s ports, in an effort to squeeze the country’s economy