Oil Prices Climb Past $110 Amid Trump’s Threat to Iran

Following a barrage of strong language from US President Donald Trump, global oil prices have rebounded above $110 (£83.38) per barrel. In Asia on Monday, Brent crude climbed 1.6% to $110.85, while US crude gained 0.8% to $112.40. Trump’s aggressive statement on Sunday, which appeared on his social media platform, warned of attacks on Iran’s power plants and bridges unless the Strait of Hormuz remained open by Tuesday.

Escalation in the Middle East

Disruptions in oil shipments from the Middle East have intensified as Iran threatens to strike vessels using the critical waterway. This comes after Tehran retaliated for US and Israeli airstrikes since February 28. The narrow strait, responsible for a fifth of global energy transport, has become a flashpoint, causing energy costs to spike and fueling fears of higher inflation worldwide.

Trump’s Forceful Demands

Trump’s recent threats intensified market anxiety, pushing oil prices above $100 per barrel last week. He warned that upcoming strikes could send Iran “back to the Stone Ages.” Over the weekend, Iranian Revolutionary Guard Corps (IRGC) forces targeted oil facilities, with Tehran claiming responsibility for strikes on Gulf petrochemical plants in Kuwait, Bahrain, and the UAE.

“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”

Later that day, Trump reiterated his timeline on the same platform: “Tuesday, 8:00 P.M. Eastern Time!” He told Fox News that an agreement was likely on Monday but hinted at drastic action if negotiations stalled.

Opec+’s Limited Output Boost

Opec+ members, including Saudi Arabia and Russia, approved a modest 206,000 barrels per day increase in crude output for May. However, the hike is symbolic, as key nations face constraints due to ongoing conflict. Trump’s delayed deadlines for Iran to ease threats against ships using the strait have left the situation unresolved.

Iranian Counterposturing

Iran’s military leadership, including General Ali Abdollahi Aliabadi, dismissed Trump’s earlier demands as “helpless, nervous, unbalanced and stupid.” The general warned that the US leader would face “the gates of hell” if Iran’s infrastructure continued to be targeted. The IRGC also signaled plans to escalate attacks on US economic interests in retaliation.