Oil prices surged above $120 a barrel on Wednesday after reports that Trump instructed aides to prepare an extended blockade of Iran's ports — the latest escalation in the ongoing US-Israel war that began in late February 2026. The Strait of Hormuz has been effectively closed for weeks, disrupting roughly a fifth of global oil and gas supplies, while Iran faces 53.7% inflation and currency collapse. Multiple sources confirm the blockade is the key driver of current price spikes, with analysts warning that prolonged disruption risks physical shortages and steeper price rises across energy and goods globally.