Oil Prices Soar Past $90 on Trump's Warning to Iran

Oil prices surged past $90 after US President Donald Trump's warning that Iran will face severe consequences. The jump erased a brief decline when investors thought tensions might ease.

The conflict in the Middle East has kept oil markets on edge for five months, with repeated threats to disrupt the Strait of Hormuz, through which 20% of global oil passes.

Analysts at RBC Capital Markets and TD Securities expressed skepticism about diplomatic progress, pointing out that Iran demands control over the waterway as a condition for any ceasefire.

Helima Croft, who leads commodity strategy at RBC Capital Markets, said 'we remain exceedingly skeptical that we are on the brink of a major diplomatic breakthrough.'