Oil Prices Soar as Trump Reignites War Fears with Iran
Crude oil prices surged at the start of the week as tensions between the US and Iran escalated. The uptick in oil prices comes after President Trump rejected a peace deal proposal tabled by Iran last week at the UN General Assembly.
The Brent crude price climbed to $107.24 per barrel, while West Texas Intermediate (WTI) rose to $94.10 per barrel. However, WTI was pressured by news that the US federal government may impose a temporary ban on diesel, forcing refiners to cut run rates and boost crude oil availability.
A report on improving oil flows from the Persian Gulf failed to offset concerns of continued war in the region. Normally, such news would pressure oil prices downward, as seen since March. This time, however, war-related concerns took center stage.
These fears are well-founded, with The Wall Street Journal reporting that President Trump is considering a resumption in military strikes on Iran after the November midterms. This would prolong the disruption to normal oil trade and keep prices elevated.