economy
Brent oil tops $118 after Trump says he will blockade Iran until it agrees to a nuclear deal
The latest move higher comes amid reports that the U.S. will look to extend its blockade of Iranian ports.
TL;DR
- Oil prices jumped over 6% after President Trump stated the U.S. naval blockade against Iran would continue until a nuclear deal is reached.
- Brent crude futures closed at $118.03 per barrel, and U.S. WTI futures settled at $106.88 per barrel.
- Trump commented that the blockade is more effective than bombing and is causing significant hardship to Iran.
- Negotiations to end the conflict have stalled, with Iran refusing to reopen the Strait of Hormuz until the U.S. lifts its blockade.
- The UAE's decision to quit OPEC was described as a significant blow to the organization, though its immediate market impact was deemed limited.
- Strategists believe the UAE's exit erodes OPEC's influence and benefits importers and consumers.
- Developments in the Persian Gulf and the resumption of oil flows through the Strait of Hormuz are identified as the main drivers for oil prices in the near term.