Trump's Iran Threat Falls Flat as Oil Prices Drop Despite Escalating Tensions
US President Donald Trump has threatened to 'blow up' Iran if no peace deal is reached, but this rhetoric failed to drive up oil prices. The US-Iran war entered its seventh month as Washington withdrew all US troops from neighboring Iraq following the 2003 invasion. Iran submitted a seven-day conditional proposal to reopen the Strait of Hormuz to Washington via Qatar at the UN General Assembly last week.
The proposal was presented to President Masoud Pezeshkian, but no further details were shared. Trump reiterated his threat to 'blow up' Iran if a peace deal is not reached, stating that 'time is coming... it's going to end very soon.' He emphasized that he has not offered Iran sanctions relief or the release of frozen funds.
Despite the tensions, Brent crude futures fell 0.4 percent to $97.67 a barrel at 03:00 GMT, while WTI fell 0.5 percent to $89.95 a barrel. The US Central Command noted that over 1 billion barrels of oil have passed through the strait in recent months.