Oil back above $110 after expletive-laden Trump threat to Iran

Global oil prices surged past the $110 threshold, reaching $110.85 for Brent crude and $112.40 for US-traded oil in Asia on Monday morning. This uptick followed a bold statement by US President Donald Trump, who warned of military action against Iran unless it ensures the free passage of ships through the Strait of Hormuz.

Threat of military strikes sparks market reaction

Trump’s social media post on Sunday, laden with expletives, declared that critical infrastructure in Iran, such as power plants and bridges, would be targeted by Tuesday if the strait remained closed. The waterway, a vital artery for a fifth of global energy shipments, has seen significant disruptions due to Iran’s threats to attack vessels passing through it, in response to US and Israeli airstrikes since February 28.

“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the Fuckin’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah. President DONALD J. TRUMP”

Trump extended multiple deadlines for Iran to lift its threats against maritime traffic, but his stance remained firm. In a follow-up post on the same platform, he emphasized the timing: “Tuesday, 8:00 P.M. Eastern Time!”

While hinting at a potential agreement on Monday, Trump also hinted at more drastic measures, stating he was contemplating “blowing everything up and taking over the oil” if talks stalled. The uncertainty surrounding the strait has already driven up energy costs worldwide, fueling fears of increased inflation.