economy
Oil prices are set to rise further as war in the Middle East escalates
Oil prices look set to rise on Monday after U.S. and Iranian trade threats to target energy facilities, analysts said.
TL;DR
- Oil prices are expected to rise further due to U.S. and Iranian threats against energy facilities.
- U.S. President Trump threatened to "obliterate" Iran's power plants if the Strait of Hormuz is not reopened within 48 hours.
- Iran warned of attacks on U.S.-linked infrastructure, including energy and desalination facilities, in retaliation.
- Brent crude futures settled at their highest in nearly four years, while U.S. crude oil also saw gains.
- The closure of the Strait of Hormuz could result in a significant loss of global supply.
- Damage to desalination plants could have catastrophic consequences for water supply and inhabitability in Gulf cities.
- The Trump administration is reportedly considering plans to blockade Iran's Kharg Island.