Oil prices changed on Monday after Donald Trump gave a warning to Iran over the weekend, pushing markets higher as tensions between the United States and Iran showed no sign of easing. The president’s message rattled traders who are already tracking dangerously low global oil stockpiles.
Oil price increases after Donald Trump’s recent warning to Iran
Brent crude futures for July rose 1.98% to $111.42 a barrel, while the U.S. West Texas Intermediate futures for June gained 2.43%, making it $107.98 per barrel. According to CNBC, it’s the highest price recorded this month.
The trigger came from a Truth Social post on Sunday, where Donald Trump wrote, “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” adding that “TIME IS OF THE ESSENCE!” The language seemingly suggested to markets that the deadlock between Washington, D.C., and Tehran over reopening the Strait of Hormuz is nowhere near a resolution, and armed conflict remains a real possibility.
A ceasefire was reached in April, but it is reportedly fragile. Iran continues to keep the Hormuz waterway mostly closed. Meanwhile, the Trump administration maintains its blockade of Iranian ports. Before hostilities began, nearly a fifth of the world’s oil and gas supply flowed through that narrow passage. With it effectively shut, the global supply picture has tightened considerably.
The International Energy Agency reinforced those concerns in its latest monthly update, warning that inventories are draining at a record pace. “Rapidly shrinking buffers amid continued disruptions, may herald future price spikes ahead,” the IEA said. Swiss bank UBS also weighed in last week, estimating that global oil inventories will reach all-time lows of 7.6 billion barrels by the end of May if monthly demand stays where it is.
For oil traders, supply is reportedly constrained, stockpiles are vanishing, and now the war is heating up again. Trump’s words removed any lingering hope that diplomacy might give a quick fix. The risk of prolonged disruption is now baked into the price.
Originally reported by Devanshi Basu on Mandatory.
