Oil back above $110 after expletive-laden Trump threat to Iran
Oil back above $110 after expletive-laden Trump threat to Iran
Global oil prices surged past $110 (£83.38) a barrel on Monday, driven by a bold statement from US President Donald Trump. The leader announced plans to target key Iranian infrastructure unless the Strait of Hormuz remains open for maritime trade by Tuesday. This development came as Brent crude climbed 1.6% to $110.85, while US crude rose 0.8% to $112.40 in Asian markets.
Strait of Hormuz tensions escalate
Iran has been blocking access to the strait as retaliation for US and Israeli airstrikes since late February. The waterway, vital for a fifth of global energy transport, saw disruptions that raised fears of inflationary pressures. Trump’s aggressive rhetoric, including a threat to “dismantle” Iran’s critical facilities, intensified market reactions.
“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”
Earlier in the week, oil prices had crossed $100 a barrel after Trump warned of potential strikes that could “send Iran back to the Stone Ages.” Iranian attacks on Gulf facilities continued, with Tehran claiming responsibility for strikes on petrochemical plants in Kuwait, Bahrain, and the UAE. The Iranian Revolutionary Guard Corps (IRGC) also signaled it would escalate attacks if US targets in the region are not spared.
OPEC+ output hike faces hurdles
OPEC+ members, including Saudi Arabia and Russia, agreed to a modest 206,000 barrels per day increase in May. However, the plan’s effectiveness is limited by the ongoing conflict, which has stalled production growth from key countries. Trump delayed deadlines for Iran to ease shipping restrictions but repeated his demands in a fiery social media post.
“Tuesday, 8:00 P.M. Eastern Time!”
Trump hinted at a potential deal with Iran on Monday, but emphasized he would “blow everything up and take over the oil” if negotiations falter. Iranian military officials, such as General Ali Abdollahi Aliabadi, dismissed earlier deadlines, labeling them “helpless, nervous, unbalanced, and stupid” while warning of dire consequences for the US leader.
