Trump Threatens Iran, Oil Rises
Oil prices rose for a third day as US President Donald Trump renewed pressure on Iran to reach a deal to end the war and reopen the Strait of Hormuz. Brent traded above US$111/barrel after rising nearly 8% last week, while WTI approached US$108/barrel.
This increase reflects a persistently high risk premium as oil flows through Hormuz remain restricted, squeezing supplies from Persian Gulf producers. Oil has risen more than 50% since the US and Israeli attacks on Iran in late February, and the market perceives the supply risk as lacking a truly convincing resolution mechanism.
Sentiment was also fueled by Trump's escalating rhetoric, who declared that "Iran's time is running out" and demanded a new proposal from Tehran. Iranian media reported that the two sides remained far apart, with Washington claiming it had not made any concrete concessions, potentially leading to a potential deadlock in negotiations.
Supply pressures also increased after the Trump administration allowed a Russian oil sales exemption to expire, despite India reportedly requesting an extension. Meanwhile, a drone attack that sparked a fire at a United Arab Emirates nuclear facility underscored the fragility of the ceasefire and kept energy security risks high.
In Asian trading, the Brent July contract rose around 1.8% to US$111.21/barrel, while the WTI June contract rose 2.1% to US$107.62/barrel; the more active July contract also strengthened. The market is now monitoring the continuation of US-Iran negotiations, the operational status of Hormuz, and further US and Israeli actions that could alter the risk profile of global oil supply. (asd)*
Source: Newsmaker.id
