Oil Prices Inch Higher as Trump Fuels Speculation

Crude oil prices continued higher today as the war between Israel and Iran continued unabated, fuelling worry that oil supply from the biggest exporting region may be under threat of disruption.

At the time of writing, Brent crude was trading at $76.69 per barrel, with its premium to the Dubai benchmark topping $3 per barrel—the highest since September 2023, Reuters reported.

West Texas Intermediate was trading at $75.16 per barrel, after gaining another 4% on Tuesday. Prices got a push yesterday by the news of tankers on fire near the Strait of Hormuz. The fire turned out to be the result of a collision between the two vessels.

Reuters noted the deployment of electronic interference as part of the hostilities between Tel Aviv and Tehran without directly suggesting it may have caused the collision. It did, however, go on to point out that this interference is disrupting navigation systems in the area.

The Strait of Hormuz has once again become a magnet for everyone in oil since it handles a third of the world’s maritime oil trade and most of the Middle East’s oil exports, at over 20 million barrels daily. The world’s largest tanker operator, Frontline, said earlier that shippers are refusing to go to the Strait of Hormuz amid the fighting. There is also fear that Iran may close the chokepoint, which would disrupt oil flows. Any closure, however, is likely to be short-lived due to the heavy U.S. military presence in the Persian Gulf.

Further fueling the price rally, President Trump suggested the U.S. may be about to enter the fray. “We know exactly where the so-called “Supreme Leader” is hiding. He is an easy target, but is safe there - We are not going to take him out (kill!), at least not for now. But we don’t want missiles shot at civilians, or American soldiers. Our patience is wearing thin. Thank you for your attention to this matter!” Trump posted on his Truth Social account on Tuesday.

By Irina Slav for Oilprice.com