After this there was a change in oil prices on Monday donald trump warned to iran Over the weekend, the market gained momentum as tensions between the United States and Iran showed no signs of easing. The president’s message unnerved traders who are already tracking dangerously low global oil inventories.
Oil prices have increased after Donald Trump’s recent warning to Iran
Brent crude futures for July rose 1.98% to $111.42 a barrel, while US West Texas Intermediate futures for June rose 2.43% to $107.98 a barrel. according to cnbcThis is the highest price recorded this month.
trigger came from a satya social post On Sunday, where Donald Trump wrote, “For Iran, the clock is ticking, and they better move fast, or they will have nothing left,” adding that “timing is of the essence!” The language signaled to markets that the standoff between Washington, D.C., and Tehran over reopening the Strait of Hormuz is no closer to resolution, and armed conflict remains a real possibility.
A ceasefire was reached in April, but it is reportedly fragile. Iran has kept the Strait of Hormuz mostly closed. Meanwhile, the Trump administration has maintained its blockade of Iranian ports. Before hostilities began, about a fifth of the world’s oil and gas supply flowed through that narrow passage. With it effectively shut down, the global supply picture has become quite tight.
The International Energy Agency reinforced those concerns in its latest monthly update, warning that inventories were depleting at a record pace. “Rapidly shrinking buffers amid continued disruptions could lead to future price increases,” the IEA said. Swiss bank UBS also forecast last week that global oil inventories would hit an all-time low of 7.6 billion barrels by the end of May if monthly demand remains unchanged.
For oil traders, supplies are reportedly disrupted, reserves are disappearing, and now the war is heating up again. Trump’s words dashed any hope that diplomacy could deliver a quick solution. The risk of prolonged disruption is now factored into the price.
Originally reported by Devanshi Basu Mandatory.