Oil Rallies After Trump Warns Iran on Peace Talks
Oil jumped more than 5% after U.S. President Donald Trump said he doesn’t know whether the United States is “willing” to work with Iran on a deal to end the regional conflict that has choked off global energy supplies. With attacks continuing across the Middle East, Brent climbed toward the $106-a-barrel area, while WTI traded around $93.
Prices were also supported after the U.S. warned commercial shipping about a potential threat from Iran-aligned Houthi militants in the Bab el-Mandeb Strait. The rally was choppy, however, after Iran’s semi-official Tasnim news agency reported that Tehran had responded—through intermediaries—to Washington’s 15-point peace proposal.
The rebound followed Trump’s warning that Iran should get serious about talks “before it is too late,” after the White House insisted negotiations are ongoing. Iran had previously rejected U.S. overtures and set its own conditions, so markets interpreted any response as a possible—though still uncertain—shift in Tehran’s stance.
Traders remain laser-focused on the Strait of Hormuz, where traffic has been reduced to a trickle. Iran’s semi-official Fars reported that the country’s parliament is working on draft legislation to charge a fee in exchange for providing security to ships transiting the chokepoint. Vessels seeking passage under Iranian protection are reportedly being asked for crew and cargo manifests and voyage details to receive clearance from the Islamic Revolutionary Guard Corps (IRGC).
Brent is on track for a monthly gain of nearly 50% as the conflict engulfs the energy-rich Middle East and sends shockwaves through the global economy, hitting Asia particularly hard. The near-total disruption through Hormuz has removed millions of barrels of daily output and supercharged refined product prices, from diesel to jet fuel.
“For nearly four weeks, markets have shown remarkable resilience in the face of disruption,” said Paola Rodriguez-Masiu, chief oil analyst at Rystad Energy. “With spare capacity largely trapped behind the Strait, and inventories already drawing down, the system has shifted from buffered to fragile.”
While Trump has not announced formal plans, people familiar with the matter said the Pentagon ordered the deployment of two Marine Expeditionary Units—about 5,000 troops plus aircraft and landing vehicles—to the region. A person familiar with the matter also said Trump is sending additional soldiers from the Army’s 82nd Airborne Division, reinforcing concerns that the conflict could broaden.
In the latest pricing, WTI for May delivery rose 3.68% to $93.64 a barrel, while Brent for May settlement gained 4.36% to $106.68 a barrel.
Regional and global spillovers are intensifying. ADNOC CEO Sultan Al Jaber warned that “weaponizing the Strait of Hormuz” destabilizes the global economy, calling it “economic terrorism against every nation, every family.” Across Asia, governments are preparing for worst-case scenarios as fuel and input costs rise, while U.S. officials are reportedly stress-testing what an extreme move toward $200 oil could mean for the domestic economy.
In a separate arena, traders are also monitoring the Russia–Ukraine war. Turkish media reported that a drone targeted a Turkish tanker carrying Urals crude near Istanbul, adding another layer of geopolitical risk for energy markets.
Source : Newsmaker.id
