Oil prices become volatile after Trump’s sharp warning to Iran<\/figcaption><\/figure>\n<\/div>\nOil prices fluctuated sharply in early trading Monday across Asia after Donald Trump made a series of aggressive threats over social media posts. <\/p>\n
The US President threatened to destroy Iran’s critical infrastructure such as bridges and power plants by Tuesday unless it allows ships to transit the Strait of Hormuz. <\/p>\n
Increased geopolitical tensions pushed Brent crude briefly above $110 a barrel. However, gains waned later in the session following reports that US and Iranian officials may be involved in discussions regarding a possible ceasefire. However, the White House has not yet commented. <\/p>\n
By early afternoon in Asia, Brent crude rose 0.7 percent to $109.80, although US-traded oil remained relatively steady at $111.62. <\/p>\n
Global energy markets are at risk following Iran’s continued closure of the Strait of Hormuz. The strait is responsible for shipping about 20 percent of the world’s oil. <\/p>\n
Disruptions in the narrow passage have raised concerns about shipping delays, increased insurance costs and immediate increases in the cost of crude oil and natural gas. Apart from this, rising fuel prices are also responsible for skyrocketing inflation. <\/p>\n
In view of Trump’s increasing threats against Iran, oil prices reached above $ 100 per barrel last week. <\/p>\n
On Sunday, OPEC+, an alliance of members of the Organization of the Petroleum Exporting Countries such as Russia and Saudi Arabia, promised to boost crude oil production to a modest increase for May. <\/p>\n
The planned increase of 206,000 barrels per day of physical supply is unlikely to succeed, with many key members unable to actually increase their operations due to the ongoing conflict.<\/p>\n<\/p><\/div>\n