Oil prices rise sharply after US threats against Iran

Oil prices are rising for the third session, and on Thursday they are gaining strongly in response to the intensification of US threats against Iran, brokers say.

A barrel of West Texas Intermediate crude oil for deliveries on III costs USD 64.37 on NYMEX in New York, up by 1.84%.

Brent on ICE for III is priced at USD 69.59 per barrel, up 1.74%.

US President Donald Trump on Wednesday warned Iran to reach a deal on its nuclear program, threatening another “much worse” attack on the country.

Donald Trump stressed that time is running out to reach an agreement.

“The huge Armada is heading towards Iran. It is moving quickly, with great strength, enthusiasm and determination. It is a larger fleet, commanded by the great aircraft carrier Abraham Lincoln, than the one sent to Venezuela,” wrote Donald Trump on the Truth Social social media platform.

“As in the case of Venezuela, (the armada) is ready, willing and able to accomplish its mission quickly, with speed and violence if necessary,” he added.

“Let's hope that Iran will quickly +sit to the table+ and negotiate a fair and just agreement – NO NUCLEAR WEAPONS – beneficial to all parties,” the American president emphasized.

The US president noted that “time is running out” and recalled that when Iran refused to abandon its nuclear program in June, it was attacked.

“The next attack will be much worse! Don't let it happen again,” warned Donald Trump.

This is Trump's second threat against Tehran in recent days. On Tuesday, he said that “another armada” was heading towards Iran, calling on Tehran to conclude a deal.

Analysts indicate that Donald Trump's latest wave of threats against Iran has “injected” a new dose of risk premium into oil markets, even though the market is struggling with pressure related to the growing oversupply of the raw material in the world.

A U.S. attack could threaten oil flows from the Middle East, a region that accounts for about one-third of global oil supplies.

Iranian retaliation could in turn cause disruptions to shipping through the Strait of Hormuz, the narrow passage separating Iran from the Arabian Peninsula.

Tankers carrying crude oil and liquefied natural gas pass through the strait delivering cargo around the world. (PAP Business)

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