Trump's Iran Comments Send Oil Prices Soaring Amid Escalation Fears
Oil prices rose on Tuesday as renewed concerns over a potential escalation between the US and Iran heightened supply worries. The US President Donald Trump declined to elaborate on the next steps in negotiations with Iran, saying 'You'll find out' when asked what would follow the latest round of talks.
The remarks from Trump renewed concerns that Washington may pursue military action against Tehran if talks fail, increasing uncertainty over oil supplies from the Middle East. International benchmark Brent crude futures for October traded at $89 per barrel, up 1.4% from the previous close of $87.72.
US strategic oil reserves also fell to their lowest level since 1983, with a drawdown of 6.1 million barrels last week to 298.7 million barrels. The reserve is part of Washington's commitment to release 172 million barrels under a coordinated action by International Energy Agency member countries.
Meanwhile, repeated drone attacks targeting oil facilities in Libya heightened concerns over potential disruptions to the country's oil output and exports. No casualties or material damage were reported in the latest incident, but the National Oil Corporation warned that continued attacks could force it to declare force majeure and completely halt operations at the Zawiya refinery.