Brent gains ahead of Trump’s Tuesday deadline

The front-month ICE Brent contract has gained by $1.47/bbl on the day, to trade at $109.36/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent crude’s price has moved higher after US President Donald Trump set a new deadline for Iran to strike a deal and reopen the Strait of Hormuz.

“Oil prices rose after US President Donald Trump signalled that an escalation of strikes on Iran could come as soon as Tuesday,” two analysts from ING Bank noted.

Trump warned in a social media post that US forces will target power plants and bridges after 20:00 ET (00:00 GMT midnight) today if Washington’s demands are not met.

Oil prices gained, “renewing fears that oil flows through the Strait of Hormuz could remain constrained for longer,” ING Bank’s analysts added.

Downward pressure:

Brent’s price has felt some downward pull after eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) collectively agreed to increase oil output by 206,000 b/d in May.

The output hike decision comes amid the escalating US-Israeli conflict with Iran that has triggered repeated strikes on energy infrastructure across the Middle East and effectively choked off traffic through the Strait of Hormuz.

“OPEC+ raised output targets by 206k b/d [206,000 b/d] in May, a largely symbolic move as the war continues to constrain output and shipments from several key members,” ING Bank’s analysts added.

By Aparupa Mazumder

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