Oil Prices Surge on Iran Conflict Escalation
Oil prices surged on Monday, August 17, as global supply concerns mounted due to diplomatic efforts being stymied in resolving the Iran conflict. The US President Donald Trump demanded Iran's surrender and threatened to bomb Oman if necessary.
Brent crude futures rose by $2.35 or 2.65% to settle at $90.87 a barrel, while US West Texas Intermediate crude futures gained $2.10 or 2.55% to reach $84.50 a barrel.
Trump stated that the US was not seeking an extension of the memorandum of understanding with Iran and expressed his expectations for a deal that would be satisfactory to him.
A senior Iranian official warned Reuters that Tehran would escalate tensions in the Strait of Hormuz and beyond if the US failed to implement an interim peace deal within weeks.