- Brent crude had climbed to $111.50 per barrel, up 2.03%.
- The failure of Trump's China visit to produce an Iran breakthrough renewed fears over the Strait of Hormuz.
- Economists at Aberdeen are examining a scenario where Brent crude surges to $180 per barrel if traffic through the Strait of Hormuz remains constrained.
- The International Energy Agency estimated there will be
- Oil prices rose on Monday morning in Asia after US President Donald Trump warned Iran the "clock is ticking" as talks to bring the war to an end have stalled.
- The global benchmark Brent crude was 1.85% higher at $111.28 (£83.61), while US-traded oil was up by 2.32% at $107.87.
- Trump warned that Iran better get moving, stating, "They better get moving, FAST, or there won't be anything left of them," and emphasized "TIME IS OF THE ESSENCE!"
- Trump's warning indicated he believed a whole civilisation would die unless Tehran agreed to a peace deal.
- The president remarked last week that the truce was on "massive life support" after rejecting Iran's demands, calling them "totally unacceptable".
- Trump is expected to hold a meeting on Tuesday with his top national security advisers to discuss options for military action regarding Iran.
Oil prices continued to rise sharply, with Brent crude reaching $111.50, following U.S. President Donald Trump’s warning to Iran that the "clock is ticking" on stalled peace negotiations.125
The global benchmark saw a 2.03% increase in value, driven by fears surrounding potential conflict in the Strait of Hormuz and oil supply constraints.
Trump’s remarks highlighted the urgency of the situation, stating, "They better get moving, FAST, or there won't be anything left of them," which intensified concerns over escalating tensions.34
According to JPMorgan, OECD inventories could face operational stress levels by early June, possibly leading to extreme price spikes.
The International Energy Agency projected a 6 mb/d gap from March to June, indicating significant supply and demand challenges ahead.
Economists at Aberdeen have suggested a scenario where Brent could spike to $180 per barrel if shipping through key areas remains restricted. The urgency of military options regarding Iran was underscored, with Trump expected to meet with national security advisers to discuss further actions.
As the situation evolves, market participants remain anxious about the implications of a prolonged deadlock in negotiations and its potential impact on global oil supplies.
“Brent crude has surged past $111 amid escalating tensions surrounding Iran's peace negotiations. Trump's latest warning adds urgency to concerns about potential oil shortages.”
Context on Iran peace talks and Trump's warnings
Trump's warning indicated he believed a whole civilisation would die unless Tehran agreed to a peace deal. The president remarked last week that the truce was on "massive life support" after rejecting Iran's demands, calling them "totally unacceptable". Trump is expected to hold a meeting on Tuesday with his top national security advisers to discuss options for military action regarding Iran.
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