Trump Threats Send Oil Prices Soaring Amid Ongoing US-Iran Conflict
Oil prices have surged more than 2% following US President Donald Trump's threat of economic retaliation against nations supporting Iran. The Brent crude futures settled at $93.78 a barrel, marking its highest level since July 24. West Texas Intermediate (WTI) crude futures for September gained $2, reaching an eight-week high of $87.83 per barrel.
The price hike comes as the US-Iran war continues to disrupt supply from key oil-producing regions in the Middle East. The Strait of Hormuz, a vital waterway, saw only nine vessels transiting through it on Wednesday, far below pre-war levels of one-fifth of global consumption. Trump warned of 'economic warfare and isolation on an unprecedented scale' against Tehran, stating that any country providing aid to Iran will face consequences.
The United Arab Emirates (UAE) has suspended all financial and economic transactions with Iran until further notice, highlighting the tense relations between the two nations. IG analyst Tony Sycamore noted that both sides are 'dug in' and lacking time to wait for a resolution, adding that crude prices will continue to rise due to the ongoing conflict.