Iran-US War News: Oil Prices Fall as Trump Draws Red Line on Strait of Hormuz
Highlights
- Trump threatens Iran with “twenty times harder” response over Strait of Hormuz.
- Oil prices fall nearly 10% after Monday’s surge past $100 per barrel.
- Strait of Hormuz closure raises global energy supply concerns.
Oil prices have significantly tumbled today amid the ongoing US-Iran conflicts. In the latest Iran-US war news, Donald Trump has issued a stark warning against blocking the Strait of Hormuz.
Earlier today, Trump threatened Iran with a military response “twenty times harder” if it tried to disrupt oil flows. As a result, oil prices plummeted by about 10%, sparking optimism.
Trump Threatens Iran over Strait of Hormuz
The US-Iran war news is once again grabbing attention as Donald Trump expressed his firm stance against Iran. Trump issued a warning against the Middle East country over its attempt to close the Strait of Hormuz.
In the latest development within the Iran-US war, Trump stated that any attempt to disrupt oil shipments through the Strait of Hormuz would trigger a severe response from US. He threatened Iran with “death, fire, and fury” if it attempted to block oil flows. Trump added,
“If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.”
This development comes in response to Iran’s closure of the Strait of Hormuz, a critical route for global energy. Around 13 million barrels of oil were moved through the path daily. Amid the escalating war, Iran closed the Strait, warning,
“The strait (of Hormuz) is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze.”
It is worth noting that Trump’s threat against the US comes just hours after his hint that the Iran-US war would end soon. As CoinGape reported, Trump posited that the war was pretty much complete.
Currently, the country allows only Iran-linked ships to pass through the way. However, recently, at least a dozen large groups of ships have formed near the Strait, likely due to electronic interference. The waterway’s restricted access is causing chaos in global energy markets as Persian Gulf countries manage full storage.
Oil Price Plunges Sharply
As the Iran-US war takes a new turn with Donald Trump’s warning over the Strait of Hormuz, the oil prices took a hit on Tuesday. This sharp drop follows a three-year high in the previous session. After experiencing the largest single-day hike of 30% on Monday, the oil prices dropped as the G7 hinted at the potential release of 400 million oil barrels.
Brent crude dropped 4.2%, to $94.79 a barrel, while U.S. West Texas Intermediate (WTI) fell 4%, to $90.96 a barrel. Both benchmarks had earlier fallen as much as 11% before recovering some losses. After climbing past $100 on Monday, U.S. crude oil fell 3.8% on Tuesday, valued at about $91 per barrel after Trump’s statement. As of now, the oil price has declined by nearly 10%, reaching $85.
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