CALGARY — Oil prices surged Thursday morning toward their highest levels since the war with Iran began, as peace talks between US and Iranian negotiators have stalled.Brent crude oil shot up past US$126 early in the day, compared to roughly $70 since the war began.West Texas Intermediate (WTI) also climbed 1.3% to $108.28 per barrel.The gains come as both countries have effectively blocked maritime traffic through the Strait of Hormuz.Dan McTeague, president of Canadians for Affordable Energy, warned prices could rise another eight cents per litre by the weekend, pushing averages to around 190 cents per litre.“Supply gaps can only be resolved by higher prices until this matter is resolved. It’s going to take a long time for us to get through this, even after the peace deal is hopefully reached someday,” McTeague told Newstalk 1010’s Moore in the Morning.Meanwhile, Iran’s new supreme leader, Mojtaba Khamenei, struck a defiant tone, issuing a written statement saying the only place Americans belonged in the Persian Gulf is “at the bottom of its waters” and that a “new chapter” was being written in the Middle East’s history..Oil prices skyrocket, Trump says US 'knew nothing' about Israeli strike Iranian gas field, European countries, Japan issue statement.He also pledged that the Islamic Republic would “guard” its “advanced technologies” and “secure the Persian Gulf region and dismantle the hostile enemy’s exploitation of this waterway.”According to Bloomberg, Iran has stated that it won’t be reopening the strait to commercial vessels until the US lifts its blockade, with it currently being unclear how long the Islamic Republic has before it runs out of oil storage and is forced to cut production.It is unclear how long Iran has left before it runs out of oil storage and is forced to cut production.The US and Iran are currently showing little sign of overcoming the current impasse, but a new round of peace talks has been agreed upon, with Donald Trump believing that the US Navy’s blockade is working.The president told Axios that blockading Iran’s ports is “somewhat more effective than the bombing” and “choking” the country by restricting its oil exports.Axios also reported that US military commanders will be briefing the president on options Thursday.“Trump wants to end the Iran war, but not on the terms proposed by Tehran,” Bloomberg Economics analysts Becca Wasser and Chris Kennedy said.“That suggests the question is no longer whether he escalates to push for a better offer, but when and how. We think the most likely window for action is within the next two weeks, and that renewed US strikes are the most likely course.”
