Oil Prices Surge as Trump Warns Iran Time Is Running Out
BBC Business reported Monday that oil prices climbed sharply in Asian trading after President Donald Trump escalated his rhetoric toward Iran, warning that time for a negotiated settlement was rapidly expiring.
Brent crude, the global benchmark, gained roughly 1.85% to reach $111.28 a barrel. US-traded West Texas Intermediate rose even more sharply, up around 2.32% to $107.87.
Trump Turns Up the Heat on Tehran
Trump posted a blunt warning on social media Sunday, telling Iranian leaders they needed to move quickly or face severe consequences. He also urged urgency in capital letters, demanding immediate action from Tehran.
The outburst came as Iran’s semi-official Mehr news agency indicated Washington had offered no meaningful concessions in its formal reply to Iran’s latest peace proposals. The agency said the absence of compromise would produce a deadlock in ongoing talks.
Trump is expected to convene a meeting with senior national security advisers on Tuesday to weigh military options related to Iran, Axios reported.
Background: A Conflict That Has Reshaped Energy Markets
The crisis traces back to late February, when US and Israeli forces launched strikes against Iran. Tehran retaliated by effectively closing the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world’s oil and liquefied natural gas normally passes.
That single act sent energy markets into turmoil. Prices have swung violently ever since, with each diplomatic development triggering fresh moves in crude futures.
A brief ceasefire announced in early April offered temporary relief. But Trump declared last week that the truce was on “massive life support,” after rejecting Iran’s negotiating terms as wholly unacceptable.
Drone Strike Near UAE Nuclear Plant Deepens Alarm
The situation grew more alarming Sunday when the United Arab Emirates reported a drone had struck near the Barakah Nuclear Power Plant outside Abu Dhabi. Officials said two of three incoming drones were intercepted, but the third hit an electrical generator just outside the plant’s inner boundary, igniting a fire.
Authorities said no injuries occurred and radiological safety levels were unaffected. UAE defence officials traced the flight path to the country’s western border. The source of the strike had not been officially confirmed as of Monday morning.
Iran has carried out attacks on multiple neighbours throughout the conflict, including Israel, Bahrain, and the UAE. The latest incident prompted the UAE to characterise it as a “dangerous escalation.”
Energy analysts warn that if the Strait of Hormuz remains closed through the summer, global supply constraints could push prices well above current levels.
