U.S. oil prices surged by nearly 8% on Monday after Iranian state media announced that Tehran would cease talks with the U.S. and entirely close the Strait of Hormuz in retaliation for Israeli attacks in Lebanon.
West Texas Intermediate futures increased by 7.8% to $94.20 per barrel, while Brent crude futures rose 6.7% to $97.23.
According to a social media post by Iran’s state-affiliated news agency, Iranian negotiators will refuse to engage in talks with the U.S. until Israel ceases attacks in Gaza and Lebanon and withdraws from the occupied territories in Lebanon
If these demands are not met, the post said, Tehran will fully block the Strait of Hormuz and open other fronts, including the Bab el-Mandeb Strait, a key trade chokepoint connecting the Red Sea to the Gulf of Aden.
President Trump posted on Truth Social: “Iran really wants to make a deal, and it will be a good one for the U.S.A. and those that are with us. But don’t the Dumocrats, and various seemingly unpatriotic Republicans, understand that it is MUCH tougher for me to properly do my job and negotiate, when political hacks keep negatively “chirping,” at levels never seen before, over and over again, that I should move faster, or move slower, or go to war, or not go to war, or whatever. Just sit back and relax, it will all work out well in the end – It always does! President DJT”
Oil contracts have increased by about 30% since the conflict began on Feb. 28.
By CEO NA Editorial Staff
