Oil prices extend multi-day rally as Trump issues new threat to Iran
Oil tankers and gas tankers were affected by the closure of the Strait of Hormuz, leading to a global energy crisis resulting from the war in the Middle East.
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Oil prices rose again on Wednesday as traders balanced the United Arab Emirates’ shocking departure from OPEC with signs that the Iran war is unlikely to end in the short term.
International comparison Brent Crude oil futures for June delivery extended gains after posting their seventh consecutive positive session on Tuesday, trading 3% higher at $114.64 a barrel at 6 a.m.
WE West Texas Intermediate Futures contracts for June delivery rose 3.6% to $103.54 per barrel. The WTI contract, which gained 3.7% in the previous session, has gained more than 49% since February 28, when the war against Iran led by the USA and Israel began.
The latest surge came as reports emerged that the United States would seek to expand its blockade of Iranian ports; This deepens the fear of long-term disruption in the strategically vital Strait of Hormuz.
The Wall Street Journal stated that President Donald Trump will try to increase the pressure on Iran’s economy and oil exports by blocking shipments to and from Iran’s ports. reported on Tuesday, citing US officials.
The US president threatened Iran in a post on Truth Social on Wednesday, saying the country “better get smart soon!” he said. and accuses Tehran’s leadership of “failing to act together.”
Attempts to resume negotiations to end the war appear to have stalled in recent days.
Energy market participants were also digesting the consequences of the UAE’s sudden decision to exit OPEC, but analysts said the move was likely to have limited market impact given the ongoing Middle East crisis.
Strategists at Dutch bank ING in question The UAE’s exit from the oil-producing group represents a “major blow” to OPEC and would certainly be welcomed by Trump as it would “erode OPEC’s influence in the oil market while also benefiting importers and consumers,” a research note published on Wednesday said.
“However, in the near term, the biggest driver of oil prices will continue to be developments in the Persian Gulf and the timing of the resumption of oil flows through the Strait of Hormuz,” they added.
