Oil prices surge following Trump’s ultimatum to Iran
Brent crude’s price opened the week above $110/bbl after tensions between the US and Iran intensified over the weekend.
IMAGE: Getty Images
US President Donald Trump issued a warning on Saturday that Washington would “obliterate” Tehran’s power plants within 48 hours, if its forces continued to block vessel movement through the Strait of Hormuz.
The message was later amplified by the White House’s official account on X, adding to market uncertainty and leaving traders braced for sharp volatility in Brent’s price. The deadline is set to expire today evening in Washington.
Iran responded by warning that any attack on its energy facilities would trigger major retaliation. In a social media post yesterday, Iran’s Parliament speaker Mohammad Bagher Ghalibaf said that US-linked financial backers holding government bonds are “legitimate targets”.
Trump’s latest statement has heightened concerns that the conflict could expand beyond military targets to include civilian and economic infrastructure.
“Oil prices are likely to remain volatile on signs of further escalation of the conflict. Trump gave Iran a two-day deadline to reopen the Strait of Hormuz or have its power plants bombed,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Meanwhile, alleviating some supply concerns, the International Energy Agency’s (IEA) executive director Fatih Birol said the energy agency is prepared to release more crude stockpiles “if necessary,” Reuters reported.
Earlier this month, the IEA agreed to release 400 million bbls of crude oil from strategic reserves, as the conflict in Iran continues to destabilise oil flows through the Persian Gulf – marking the sixth such coordinated emergency stock release in the IEA’s history.
The IEA is consulting with governments in Asia and Europe on the release of more oil from their emergency reserves as the war continues, Reuters added.
By Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
