Oil Prices Surge Amid Trump's Threats to Smack Iran Harder

Crude oil prices have extended gains after US President Donald Trump threatened to attack Iran further following a recent exchange of fire.

Speaking at the Oval Office, Trump said the US is ready to 'smack' Iran if hostilities continue. This comes after the latest escalation between Washington and Tehran, with both sides resuming direct strikes for the first time since late July.

The US Central Command struck two Iranian rocket launchers on Larak Island, prompting Iran to retaliate by targeting US bases in Jordan and the UAE. The Iranian Islamic Revolutionary Guard Corps vowed 'response and punishment' for the strikes.

Ongoing safety issues in the Strait of Hormuz have also contributed to the price hike. On Monday, a tanker came under an air assault while transiting outbound in the strait, with three unknown projectiles hitting it. Iran has been accused of targeting vessels navigating through the region.