economy
Oil little changed after Trump makes ominous threat against Iran ahead of deadline to open Strait of Hormuz
Oil prices were little changed after President Donald Trump threatened to destroy Iran's civilization if his 8 p.m. ET deadline is not met.
TL;DR
- Oil prices were largely unchanged following President Trump's threats towards Iran.
- Trump set a deadline for Iran to reopen the Strait of Hormuz, threatening severe consequences.
- The U.S. struck military targets on Iran's Kharg Island, an oil export hub.
- Tanker traffic through the Strait has decreased due to attacks, causing a supply shock and soaring fuel prices.
- Iran reportedly withdrew from direct negotiations with the U.S. after Trump's threats, but talks continue via mediators.
- Experts express uncertainty about the outcome, with possibilities ranging from Iran conceding to further escalation.
- Shipping traffic through the Strait has shown some improvement but remains significantly below pre-conflict levels.
- A full resumption of oil supplies to energy-short Asian economies is expected to take 3 to 6 months.