Oil prices climbed sharply this morning as President Donald Trump hinted the US would bomb Iran’s reserves “just for fun” amid the ongoing war in the Middle East.
Washington has intensified efforts to rally international support for protecting the vital Strait of Hormuz shipping lane after the Islamic Republic closed off the route last week.
Brent crude futures for May delivery rose three per cent to $106.18 per barrel, whilst US West Texas Intermediate contracts for April gained two per cent, hitting $100.66.
The benchmarks have jumped more than 50 per cent over the past four weeks since the onset of the US-Iran war, reaching levels not seen since 2022. Last week marked the first time in four years that Brent settled above the $100 threshold.
Oil prices are on the rise as President Trump hints at bombing Iran ‘for fun’
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GETTY / TRADING ECONOMICS
Severe disruption to shipping through the strategic waterway has triggered what analysts describe as the largest oil supply crisis on record.
President Trump declared over the weekend that he was insisting that allied nations contribute to safeguarding the crucial maritime passage, confirming he had been holding discussions with several partners about securing the route.
The narrow strait serves as a vital chokepoint for global energy supplies, with approximately one-fifth of the world’s crude passing through its waters.
According to US officials speaking to The Wall Street Journal, the White House intends to announce as early as this week that numerous countries have committed to helping escort tankers through the waterway.
The Iran war has caused major disrupton across the globe | GETTY
Donald Trump has called for a regime change in Iran | GETTY
However, discussions continue over whether such operations would commence before or after hostilities conclude.
President Trump ordered strikes on Friday targeting Iranian military installations on Kharg Island, claiming the attacks had “totally demolished” much of the island, while leaving oil facilities intact.
In an NBC News interview published Saturday, the President suggested “we may hit it a few more times just for fun”.
The island represents Iran’s primary oil export hub, handling roughly 90 per cent of the country’s crude shipments, according to JPMorgan analysis.
France has rejected Donald Trump’s urges to deploy to the Strait of Hormuz, adding it would maintain a ‘defensive’ position | GB NEWS
Organization of the Petroleum Exporting Countries (OPEC) figures show Iranian production reached 3.2 million barrels daily in February.
UN Ambassador Mike Waltz told CNN: “He deliberately hit the military infrastructure only, for now. [Trump] would certainly think he would maintain that optionality if he wants to take down their energy infrastructure.”
Despite the historic supply disruption, prices continue to climb even as more than 30 nations have agreed to release 400 million barrels from their strategic reserves. The coordinated effort, the largest of its kind ever undertaken, will see the United States contribute 172 million barrels from its Strategic Petroleum Reserve.
The International Energy Agency, coordinating the response from Paris, confirmed on Sunday that Asian countries would begin releasing emergency supplies immediately, with American and European stockpiles following by month’s end.