US-Iran Tensions Fuel Oil Price Surge
Oil prices surged by 2.5% on Monday as tensions between the US and Iran escalated, following the expiration of their 60-day ceasefire. Brent settled at $90.87 per barrel, while West Texas Intermediate rose to $84.50 per barrel.
In a statement from the Oval Office, President Donald Trump expressed his skepticism about the possibility of a deal with Iran, saying 'They want to make a deal, but they're not going to make the kind of a deal that I feel is necessary.'
The Iranian government has ruled out extending diplomatic talks and warned of an offensive posture if negotiations fail. According to state news agency Tasnim, Tehran will shift its strategy if Washington does not meet its demands.
Despite the ongoing tensions, experts believe there may be more bias towards a decline in oil prices than an increase. Jason Stephens, founder of Evertern Wealth, stated that 'I think a lot of people have just turned a blind eye to it; we think that there's more bias to the downside in oil prices than there is the risk to the upside at this point in the game.'