Oil price hits highest since 2022 after report Trump to be briefed on new Iran options

He told the BBC’s Today programme an oil price approaching $125 is the point where businesses and politicians “start to get a bit more jittery”.

“We might start seeing maybe more headlines of trying to de-escalate again,” he added, because the increase in prices “has a knock-on effect not only on oil, but oil-related products, inflation and basically every factor of our day-to-day lives”.

Susannah Streeter, chief investment strategist at Wealth Club, said costs could remain high into next year.

“Urea shipments, used for fertiliser, are blocked and costs have rocketed for farmers around the world, who didn’t buy stocks in advance.

“The worry is that all these costs will be passed on through supply chains, pushing up the price of everyday goods, later in the year and into next year.”

The BBC understands that energy executives met Trump on Tuesday to discuss ways to limit the impact of the war on US consumers, fuelling concerns in the market about an extended disruption to energy supplies.

“The big question in my mind is how long the Trump administration can stand the economic heat,” Will Walker-Arnott, investment manager at Raymond James, told the Today programme.