Trump Urges Iran to Quickly Reach Deal on Hormuz
US President Donald Trump has urged Iran to swiftly reach an agreement with Oman regarding the Strait of Hormuz. Trump signaled that a deal must be reached as early as Tuesday, or Tehran risks facing a major airstrike from the United States.
Trump described this diplomatic move as a final opportunity for Iran. He had previously called off plans for a major strike over the weekend to allow more time for talks but emphasized that the next decision would be made very soon.
Resolving the conflict now hinges on negotiations between Iran and Oman concerning the flow of vessels through the Strait of Hormuz. However, no significant progress has been observed, as Iran remains adamant about its right to regulate shipping and take action against unauthorized passing vessels.
This uncertainty has once again driven up oil prices. Brent crude rose approximately 1.8% to US$85.29 per barrel, although it remains down about 5% for the week following Trump's earlier decision to delay the strike and open the door to diplomacy.
Iran has warned of a severe response should the United States and Israel launch a major attack. Tehran is also considered capable of striking the facilities and interests of Gulf nations, keeping the risk of energy supply disruptions high.
Newsmaker Analysis: Trump's ultimatum has once again added a geopolitical risk premium to oil prices. Should the deal fail, Brent prices could continue to rise as the market anticipates an attack and an Iranian counter-response. Conversely, an agreement to open the Strait of Hormuz could sharply push oil prices down again.
Source: Newsmaker.id
