Oil prices surge amid Trump threats and Iran tensions

Global oil prices surged following threats from Donald Trump regarding Iran and heightened geopolitical tensions in the Middle East. Brent crude rose by over 3%, exceeding $94 per barrel, while West Texas Intermediate (WTI) also saw significant gains, reaching approximately $88 per barrel. These increases mark a three-week high for the market.

Investors are concerned that ongoing instability in the Middle East could disrupt supply flows. Analysts from UBS noted that regional tensions leave the possibility of further supply disruptions open, especially as lower exports from the Middle East limit market availability.

In response to market volatility, Donald Trump expressed confidence in the stability of oil supplies, stating that prices remain between $83 and $85 rather than the $300 levels some feared. He emphasized that the United States maintains significant production and asserted that the U.S. has “full control” over the Strait of Hormuz. Regarding diplomatic relations, Trump left open the possibility of future negotiations with Tehran but maintained a firm stance against Iran acquiring nuclear weapons.