Trump Warning Sends Oil Prices Soaring to Three-Week High
Oil prices surged to their highest level in three weeks on Thursday after US President Donald Trump threatened 'economic warfare and isolation on an unprecedented scale' against nations supporting Iran.
The Brent crude futures rose by $1.94, or 2.1 percent, to reach $93.56 a barrel at 1:49 p.m. EDT, while the September WTI contract for US West Texas Intermediate crude futures climbed by $2.18, or 2.5 percent, to $88.01 a barrel.
The tensions in the Middle East remain high, leaving room for further supply disruptions, according to Giovanni Staunovo, an analyst with UBS. Lower oil exports from the region are tightening the oil market once again.
Trump's warning could potentially become a sensitive topic in US-China relations, as China is the largest importer of Iranian crude oil, said Alex Hodes, an energy analyst at StoneX.