Oil prices surge on renewed Middle East threats

Brent crude’s price has surpassed $110/bbl, following hardline remarks from US President Donald Trump.

IMAGE: Getty Images

Trump remarked on social media platform Truth Social that Iran’s government needs to act fast and conclude a ceasefire and nuclear deal with Washington.

“There won’t be anything left of them,” Trump wrote, stressing that time is of the essence for Tehran.

The remarks have further buoyed oil prices as uncertainty in the Persian Gulf remains elevated, according to market analysts.

“It’s no surprise that Brent is trading stronger this morning after the [Trump’s] aggressive rhetoric, moving convincingly above $110/bbl,” two analysts from ING Bank said.

The remarks come right after Trump’s state visit to Beijing, China – which included high-level discussions on the rapidly evolving Middle East situation.

“The oil market continues to reprice ongoing supply disruptions, with last week's Trump-Xi talks yielding no tangible progress in the Middle East,” ING Bank’s analysts noted.

Hormuz remains a maritime flashpoint

The Strait of Hormuz continues to be a focal point for maritime disruptions.

Since the beginning of the Middle East conflict on 28 February, the United Kingdom Maritime Trade Operations (UKMTO) agency has received 49 reports of incidents affecting vessels operating in and around the Arabian Gulf, the Gulf of Oman and the Strait of Hormuz, it said.

As of last week, US forces have continued to disable Iran-linked tankers, while Iran seized the tanker JIN LI, in what appears to be a “signaling move,” market intelligence provider Windward said.

“Five weeks into the ceasefire, the Strait of Hormuz remains constrained, opaque, and increasingly managed through selective access,” Windward added.

By Aparupa Mazumder

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