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2026-04-07 09:06:41
[Trump's Tough Threat to Iran Sends Oil Prices Up] 1. Oil prices continued their upward trend on Tuesday after US President Trump escalated his tough rhetoric on Iran, threatening stronger action if Iran does not reopen the Strait of Hormuz. West Texas Intermediate crude futures rose as much as 1.3% to $113.95 a barrel. 3. Trump warned that he would send Tehran "to hell" if Iran fails to reopen the strait by the deadline, and stated that further action would be taken if no agreement is reached. Iran rejected a ceasefire demanded through Pakistan, emphasizing the need for a permanent end to the war and resisting pressure to reopen the Strait of Hormuz. 4. Tim Waterer, chief market analyst at KCM Trade, said that with Trump's ultimatum deadline approaching, the time factor is almost as important to oil prices as fundamentals. The possibility of a ceasefire agreement provides some hedging, but continued supply concerns stemming from the strait's closure and damage to energy facilities continue to support oil prices. 5. The UN Security Council is expected to vote on a resolution to protect commercial shipping in the Strait of Hormuz on Tuesday, but the resolution has been significantly weakened due to China's opposition to authorizing the use of force. 6. The ongoing conflict continues to pressure the global oil market, with refiners in Asia and Europe scrambling for alternative supplies, pushing the premium for US WTI crude oil to a record high. Saudi Aramco set its official selling price for Arab Light crude oil sold to Asia in May at a record premium of $19.50 per barrel over the benchmark. Meanwhile, the attack on the Union terminal of the Caspian pipeline in Russia by a Ukrainian drone further exacerbated supply concerns.
