Oil back above $110 after expletive-laden Trump threat to Iran
Oil Prices Climb Above $110 Following Trump’s Strong-Willed Threat to Iran
Market Reactions to Escalating Tensions
Global oil prices surged past $110 (£83.38) per barrel on Monday, driven by renewed tensions between the US and Iran. Brent crude climbed 1.6% to $110.85, while US crude rose 0.8% to $112.40. The uptick follows a stern warning from President Donald Trump, who pledged to target Iran’s vital infrastructure unless the Strait of Hormuz remained open by Tuesday.
Strait of Hormuz Disruption
Shipping through the Strait of Hormuz has faced significant delays, with Tehran accusing the US and Israel of airstrikes since February 28. These actions have prompted Iran to threaten attacks on vessels traversing the narrow waterway, which handles roughly 20% of global energy shipments. The ongoing disruptions have already contributed to rising energy costs worldwide and intensified fears of inflationary pressures.
OPEC+ Output Decisions
OPEC+ members, including Saudi Arabia and Russia, finalized a modest production increase of 206,000 barrels daily in May. However, the adjustment is limited in practical impact, as several key producers remain constrained by the escalating conflict. Trump’s recent demands have delayed deadlines for Iran to ease its threats against maritime traffic, though the production hike offers a minor counterbalance to market volatility.
Trump’s Social Media Declaration
On Sunday, Trump issued a forceful statement on Truth Social, declaring:
“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the Fuckin’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah. President DONALD J. TRUMP.”
Hours later, he reiterated the timeline, specifying:
“Tuesday, 8:00 P.M. Eastern Time!”
Iranian Counterpoints
Senior Iranian military officer Gen Ali Abdollahi Aliabadi criticized Trump’s earlier deadline, labeling it “helpless, nervous, unbalanced and stupid.” He warned that the US would face severe consequences if its strikes on Iranian infrastructure continued. Meanwhile, the Iranian Revolutionary Guard Corps (IRGC) announced plans to escalate attacks on US economic interests in response to ongoing threats against civilian facilities.
