Oil prices seesaw, gas creeps further past $4 per gallon amid Iran war uncertainty
Oil prices fluctuated on Monday morning as uncertainty loomed over the next phase of the Iran conflict. President Trump threatened severe attacks, but reports suggested that regional mediators are working on a 45-day ceasefire.
At 9:45 a.m. ET, Brent crude prices were up 0.2% at $109.19 per barrel, while West Texas Intermediate saw a 1.2% increase to $112.86 after recovering from earlier losses.
The national average gasoline prices continued to rise, reaching $4.12 per gallon, following energy supply shocks by a few weeks.
President Trump issued a warning to Iran, setting a deadline of 8 p.m. ET on Tuesday for the reopening of the Strait of Hormuz. Failure to comply would result in severe attacks on Iran’s infrastructure.
In a social media post, Trump stated, “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the F–kin’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah.”
Iran responded by threatening “much more devastating and widespread” retaliation if Trump proceeds with his plan to escalate attacks.
Last Wednesday, Trump announced a two to three-week timeline for the US exit from Iran. However, concerns have risen among investors regarding the exit without a resolution on the strait’s reopening.
The effective blockade of the strait by Iran has caused the most significant energy supply disruption, with an estimated loss of 1 billion barrels by the end of the month, according to TD Securities.
Discussions between the US, Iran, and regional mediators have focused on a potential 45-day ceasefire that could lead to a lasting resolution of the conflict, as reported by Axios.
Sources familiar with the negotiations acknowledge that reaching a deal before Trump’s deadline is a challenge, but consider it a crucial opportunity to prevent a major escalation.
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