Oil prices spiked on Thursday as traders weighed the possibility of conflict in the Middle East amid President Donald Trump‘s increased pressure on Iran to accept a nuclear deal, with warnings of a possible military strike.
Brent crude futures rose $3.33, or 4.8%, to $71.73 per barrel, marking the first time it hit $70 since September. U.S. West Texas Intermediate crude was up $3.16, or 5%, at $66.37 per barrel.
Iran is the sixth-largest oil producer in the world, accounting for nearly 4% of global crude production and producing about 3.2 million barrels per day.
In a Truth Social post on Wednesday, Trump warned the Islamic Republic to negotiate on a nuclear deal or face U.S. strikes carried out by a naval fleet similar to the one used in the military operations in Venezuela when U.S. special forces captured former dictator Nicolas Maduro.
“Like with Venezuela, it is, ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary,” Trump said in a Truth Social post.
“Hopefully Iran will quickly ‘Come to the Table’ and negotiate a fair and equitable deal – NO NUCLEAR WEAPONS – one that is good for all parties,” he wrote. “Time is running out, it is truly of the essence! As I told Iran once before, MAKE A DEAL! They didn’t, and there was ‘Operation Midnight Hammer,’ a major destruction of Iran. The next attack will be far worse!”
For weeks, Trump has threatened U.S. intervention in Iran based on the treatment of protesters demonstrating against the regime, an Islamic theocracy led by Supreme Leader Ayatollah Ali Khamenei. The nationwide protests have resulted in tens of thousands being killed by the ayatollah’s forces.
Iran, too, has taken steps to raise tensions. Iran’s Revolutionary Guard Corps naval forces will hold live-fire exercises in the Strait of Hormuz on Feb. 1 and 2, Reuters reported. The strait is a significant oil export route for Saudi Arabia, Iran, Iraq, and the United Arab Emirates.
Last week, Trump threatened Iran by saying an “armada” was moving to a position from which it could carry out strikes.
TRUMP THREATENS ATTACK ON IRAN WORSE THAN ‘MIDNIGHT HAMMER’ WITH MILITARY BUILDUP IN THE REGION
“We have a lot of ships going that direction, just in case. … I’d rather not see anything happen, but we’re watching them very closely,” Trump said aboard Air Force One.
The U.S. “Armada” is the Abraham Lincoln Carrier Strike Group, which comprises the USS Abraham Lincoln and the Carrier Air Wing 9, and destroyers USS Frank E. Petersen Jr., USS Spruance, and USS Michael Murphy.
