- President Trump is considering a "massive attack" on Iran, which he says would be "bigger than ever before" and that Iran has not "received enough pain yet."
- Trump warned he would hold Iran responsible for Houthi attacks, stating that "major military punishment will be inflicted upon Iran" if further attacks occur.
- Iran's Revolutionary Guard claimed to have attacked U.S. military facilities at an American base in Jordan.
- Secretary of State Marco Rubio described Trump's approach to the war as "a head for an eye."
- Oil prices dropped by more than 3% on Friday but remain on track for a weekly jump of 10% as the U.S.-Iran conflict escalates.
- Analyst Daniela Hathorn says instability around shipping routes has rebuilt a "sizeable geopolitical risk premium" into oil markets, with disruptions in the Red Sea and Strait of Hormuz keeping energy markets tight and inflation risks elevated.
- UBS strategist Giovanni Staunovo warns markets may be overestimating recovery, expecting slower production recovery in the Middle East, keeping oil tight with Brent crude falling to $85 a barrel by year-end.
Oil prices dropped by more than 3% on Friday, yet they are on track for a 10% weekly gain as geopolitical tensions rise. U.S. President Trump is contemplating a 'massive attack' on Iran, stating it would be 'bigger than ever before' amid ongoing conflicts in the region.12389
The president's remarks came after Iran-backed Houthis attacked two Saudi oil tankers in the Red Sea, prompting Trump to declare that 'the U.S. will hold Iran responsible' for such actions. He emphasized that 'major military punishment' would be inflicted on Iran and the Houthis if further attacks occurred.45101112
Market analysts are noting that the instability in key shipping routes has created a 'sizeable geopolitical risk premium' in oil markets. Daniela Hathorn, a senior market analyst, remarked that 'Investor sentiment has been dampened by continued disruption' in the Red Sea, which has raised concerns over global trade and energy security.
UBS strategist Giovanni Staunovo warned that the oil market's recovery may be 'slower than the market anticipates', as the conflict continues to depress production flows. He predicts that Brent crude could fall to $85 a barrel by year-end if tensions persist.13141516
“Iran's Revolutionary Guard claimed it attacked U.S. military facilities at an American base in Jordan, as Secretary of State Marco Rubio labeled Trump's approach 'a head for an eye.' Analysts warn a 'sizeable geopolitical risk premium' is rebuilding into oil markets amid disruptions in the Red Sea and Strait of Hormuz.”
CNBC
