US oil held near its highest close since June 2022 as President Donald Trump escalated threats to obliterate key Iranian infrastructure if his terms aren’t met before a Tuesday deadline.
West Texas Intermediate traded near $113 a barrel, after adding 0.8% on Monday, while Brent settled just below $110. Trump said Monday that talks with Iran are “going well,” even though he listed reopening the Strait of Hormuz as “a very big priority.”
The US president laid bare the consequences Iran would face if it doesn’t reach a deal by his Tuesday 8 p.m. Eastern Time cut-off, saying the US military could destroy “every bridge in Iran by 12 o’clock tomorrow night.” Power plants would be rendered “burning, exploding and never to be used again,” he said, which would be a breach of the Geneva Conventions.
Iran has warned that it would respond to the kind of strikes Trump is threatening against civilian targets by ramping up its own attacks on energy infrastructure in the Gulf — a move that could heighten the global fuel squeeze and amplify damage to the world economy. The war — which is now in its sixth week — has roiled crude markets, triggering a severe supply shock.
Trump’s “not backing off previous statements,” said Carl Larry, an oil and gas analyst at Enverus. “Think we’re getting to an end, but that might not be the best if it culminates in military actions.”
As the war grinds on, there are other signs of concern about near-term supply. WTI’s prompt spread — the difference between its two nearest contracts — at one point traded near $15.50 a barrel on Monday, close to the biggest premium on record. The widening was ushered in by firming expectations of tighter US supplies as overseas buyers rush to purchase American crude.
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With assistance from Charles Gorrivan.
This article was generated from an automated news agency feed without modifications to text.
