Oil Prices Surge Above $92 as Trump Threatens Economic Consequences
Oil prices remained above $92 per barrel as investors continued to remain on edge due to fresh escalations in the US-Iran war.
Brent crude futures rose 55 cents, or 0.6%, to $92.17, while US West Texas Intermediate crude futures gained 25 cents to $84.64 a barrel, extending gains for a fourth straight session.
According to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, 'the market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman, and Iran.'
The US-Iran war has entered its sixth month, with Iran's military signaling a shift from retaliation to offence. Iran's supreme leader Mojtaba Khamenei outlined this approach in a reshuffle of top military commanders earlier this month, calling for 'strengthening maximum deterrence and preparing to conduct large-scale offensive operations against the enemy.'
US President Donald Trump has warned of economic consequences against any country that provides 'any type of lifeline to Iran', promising 'Economic Warfare and Isolation on an unprecedented scale'. However, JPMorgan estimated that every additional month of disruption could add around $7 to $8 a barrel to Brent prices.