Trump Threatens Iran, Oil Heats Up!
Oil prices rose again for the third consecutive day after United States President Donald Trump threatened additional attacks on Iran. This threat came just hours after the US reimposed a blockade on Iranian shipping through the Strait of Hormuz.
Brent crude moved closer to US$86 per barrel after surging 11% in the previous two sessions. Meanwhile, WTI hovered above US$80 per barrel. In Asian trading, Brent rose 1.3% to US$85.86 per barrel, while WTI rose 1.1% to US$80.22 per barrel.
Trump said the US would continue its attacks on Iran and even opened the possibility of targeting power plants and bridges next week if Tehran did not return to the negotiating table. The US also resumed the blockade at 4:00 p.m. Washington time, an hour after American forces launched new strikes aimed at weakening Iran's ability to attack commercial shipping in the Strait of Hormuz.
However, Trump canceled plans for a 20% levy on ships passing through Hormuz. This decision has somewhat eased concerns in the shipping industry, but it hasn't been enough to calm the market, as shipping continues to be disrupted along the world's main energy route.
Tensions in the region have nearly halted oil shipping, particularly following attacks on crude-laden vessels and Gulf states like Kuwait. The Strait of Hormuz is a key focus, as approximately one-fifth of global crude oil and LNG supplies typically pass through this route. If disruptions continue, the supply risks from this energy-rich region could grow.
The risk of conflict has also widened after the Iran-backed Houthi group fired ballistic missiles and drones at Saudi Arabia, marking the first major escalation since the 2022 ceasefire. As a result, oil prices are likely to remain high as long as the blockade, ship attacks, and Trump's threats remain unabated. However, if Iran resumes negotiations or shipping flows recover, some of the war premium could begin to drain from oil prices. (asd)*
Source: Newsmaker.id
