Oil prices extend multi-day rally as Trump issues new threat to Iran
CNBC • • nation
Key Points:
- Oil prices surged over 5% on Wednesday following reports that President Donald Trump plans to maintain the U.S. Navy blockade of Iran for an extended period to pressure Tehran.
- Brent crude futures rose to $117.58 per barrel, while U.S. West Texas Intermediate futures increased to $105.33 per barrel amid ongoing tensions in the Middle East.
- Trump has opted to continue the blockade rather than resume bombing or disengage, signaling a prolonged standoff with Iran, which has refused to reopen the Strait of Hormuz until the blockade is lifted.
- The UAE's sudden decision to leave OPEC was noted by analysts as a significant blow to the group, potentially reducing its influence, but the immediate impact on oil prices is expected to be limited due to the ongoing crisis in the Persian Gulf.
- Market strategists emphasize that the primary factor affecting oil prices remains the situation in the Persian Gulf and the uncertainty over when oil flows through the Strait of Hormuz will resume.
