Trump's Aggressive Stance Sends Oil Prices Higher Amid Escalating Tensions

Oil prices rose on Wednesday after US President Donald Trump adopted a more aggressive stance toward Iran, sparking concerns of escalating military tensions in the Middle East.

Brent crude futures climbed 2% to $92 per barrel, while West Texas Intermediate (WTI) crude futures gained 2% to around $90 per barrel. The gains came after Trump's comments suggesting that Iran had taken 'too long to negotiate a deal' and would now 'have to pay the price'.

The Strait of Hormuz remains a key market focus, with ongoing disruptions in the waterway supporting oil prices. The US has imposed restrictions on vessels linked to Iranian ports, while Iran continues to restrict shipping activity through the strait.

Falling US inventories also added support to prices, with US crude stockpiles declining by 7.228 million barrels last week. This marked the seventh consecutive weekly decline in US crude stockpiles, suggesting demand remains relatively resilient despite economic uncertainties and higher borrowing costs.