Oil prices moved higher after US President Donald Trump warned that Iran would face consequences for prolonging negotiations toward a peace agreement, escalating tensions between Washington and Tehran following a series of attacks in the region.
Brent crude climbed toward $93 per barrel, recovering previous losses, while West Texas Intermediate (WTI) traded near $89 per barrel.
Latest Oil Prices:
WTI Crude $90.15 +1.95 +2.21%
Brent Crude $93.22 +1.77 +1.94%
Murban Crude $89.16 +0.92 +1.04%
Natural Gas $3.184 +0.044 +1.40%
Gasoline $3.108 +0.087 +2.89%
Heating Oil $3.606 +0.064 +1.82%
WTI Midland $90.68 +1.87 +2.11%
Opec Basket $98.92 -3.60 -3.51%
Indian Basket $92.55 -4.64 -4.77%
Trump did not specify the measures he intends to take against Iran in a post on his Truth Social platform, but his comments came after renewed military exchanges between the two sides.
The United States had earlier targeted locations near the Strait of Hormuz, while Iran responded with drone attacks against the US Fifth Fleet in Bahrain, according to Iranian state media, as well as strikes targeting US military facilities in Jordan and Kuwait.
The US Central Command said on social media platform X that the “defensive strikes” against Iran were carried out under Trump’s direction in response to the downing of an Apache helicopter near Oman’s coast. The command described the operation as a “proportionate response” to what it called Iranian aggression.
Despite rising geopolitical tensions, crude prices remain more than 25% below their late-April peak, supported by several factors including weaker Chinese oil imports, record US crude exports, and large emergency stockpile releases.
The decline from previous highs suggests that oil markets have been adapting to supply disruptions, at least temporarily, with physical markets still benefiting from relatively strong availability.
Shell CEO Wael Sawan said markets are currently trying to find a balance, adding that short-term news developments are having a greater impact on prices while inventories are being drawn down rapidly.
The US Central Command said American forces targeted air defense sites, ground control centers, and radar monitoring positions near the Strait of Hormuz using precision-guided weapons launched from military aircraft.
Iranian state media reported attacks on Qeshm Island and the Jask area near the strategic waterway. Trump had earlier blamed Tehran for the helicopter incident and pledged a response.
Iranian Foreign Minister Abbas Araghchi said after the US strikes that Iran would not leave any attack or threat unanswered.
US crude inventories dropped by 9.1 million barrels last week, according to an American Petroleum Institute report cited by Bloomberg. If confirmed by official government data, it would represent the largest decline since September.
US crude stockpiles have already fallen to their lowest level in four months, reflecting tighter global supply conditions as buyers seek alternatives amid disruptions affecting Gulf oil flows.
In latest trading, Brent futures for August delivery rose to around $92.18 per barrel at midday London time after falling 3% in the previous session.
WTI July futures increased to approximately $89.14 per barrel.
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