Oil back above $110 after expletive-laden Trump threat to Iran
Oil back above $110 after expletive-laden Trump threat to Iran
Rising Oil Prices Amid US-Iran Tensions
Global oil prices climbed past $110 a barrel following a declaration by US President Donald Trump that critical Iranian infrastructure would be targeted unless the Strait of Hormuz remained open. On Monday, Brent crude surged 1.6% to $110.85, while US-based crude rose 0.8% to $112.40.
Trump’s Threats and Immediate Market Response
Trump’s strong language on social media on Sunday ignited renewed concerns about energy supply risks. In a fervent post, he vowed to strike power plants and bridges in Iran if the crucial waterway wasn’t cleared by Tuesday. This intensified market anxiety, pushing prices upward.
Disruption in the Strait of Hormuz
Shipping through the Strait of Hormuz has faced significant delays as Tehran retaliates against US and Israeli strikes since February 28. The narrow passage, which handles roughly 20% of global energy shipments, has become a focal point of geopolitical friction, heightening fears of inflationary pressures.
Opec+’s Output Decision and Its Impact
Opec+ members, including Saudi Arabia and Russia, agreed to a modest output increase of 206,000 barrels a day in May. However, the adjustment is symbolic, as key producers struggle to boost production due to ongoing conflict-related constraints.
Escalating Escalation: Trump’s Ultimatum
“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the Fuckin’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah. President DONALD J. TRUMP”
Hours later, Trump reiterated his demand on the same platform: “Tuesday, 8:00 P.M. Eastern Time!” He hinted at potential military action if an agreement wasn’t reached soon, emphasizing his resolve to control the energy situation.
Iranian Response and Continued Attacks
Iran dismissed Trump’s earlier deadline as weak, labeling it “helpless, nervous, unbalanced and stupid.” Senior military officer Gen Ali Abdollahi Aliabadi warned that the US would face severe consequences if its attacks on Iranian infrastructure persisted. Meanwhile, Iranian strikes on Gulf oil facilities continued, with Tehran claiming responsibility for assaults in Kuwait, Bahrain, and the UAE.
