Trump’s warning comes amid a rise in hostilities between the U.S. and Iran, with the Islamic Revolutionary Guard Corps claiming that they targeted U.S. assets in two Jordanian bases.
- U.S. West Texas Intermediate futures expiring in September were up 3.2%, hovering around $87.04 per barrel, while Brent crude futures were up 3.44%, hovering around $94.14 a barrel.
- ING Think analysts said Brent crude may be undervalued given Middle East disruptions and the suspension of Kazakhstan oil shipments to Russia's CPC terminal.
- Secretary of State Marco Rubio told reporters at the ASEAN Foreign Ministers’ meeting in the Philippines that the U.S. would “love” to reach a diplomatic settlement in the Iran war.
President Donald Trump on Wednesday threatened to destroy a bridge or a power plant in Iran every time the country shoots at a ship in the Strait of Hormuz.
Trump’s warning comes amid a rise in hostilities between the U.S. and Iran, with the Islamic Revolutionary Guard Corps claiming that they targeted U.S. assets in two Jordanian bases, according to a report by CNN.
“From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy one bridge or power plant, including those located next to, or in, the Capital City of Tehran,” Trump said in a post on Truth Social.
Crude Oil Prices Soar To Highest Levels Since June 10
Meanwhile, crude oil prices soared to their highest levels since June 10. U.S. West Texas Intermediate (WTI) futures expiring in September were up 3.2%, hovering around $87.04 per barrel. Brent crude futures expiring in September were up 3.44%, hovering around $94.14 a barrel.
The United States Oil Fund ETF (USO) was up nearly 3%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) gained about 2%.
Analysts at ING Think said in a note on Wednesday that, given disruptions in the Middle East and developments in the Black Sea after Russia’s CPC terminal stopped receiving oil from Kazakhstan, Brent crude may be undervalued at its current levels.
“While the market has been relying on the US for additional supply since the war, room for further supply is limited as US refiners essentially operate at capacity,” the firm said.
Rubio Says US Would ‘Love’ To Reach A Diplomatic Settlement In Iran War
Secretary of State Marco Rubio told reporters at the ASEAN Foreign Ministers’ meeting in the Philippines on Wednesday that the U.S. would “love” to reach a diplomatic settlement in the Iran war, according to a report by CNBC.
“The U.S. would love to reach a diplomatic settlement, we’d love to reach an agreement if it were possible with Iran where they say we’ll no longer sponsor terrorism and we will not pursue a nuclear weapon or the things that you need for a nuclear weapon,” he said, while adding that Iran does not seem to be serious about a deal currently.
Rubio said that the U.S. will continue to protect ships in the Strait of Hormuz, but added that other countries should also join in to aid it in its efforts. His comments come amid the U.S.’s 11th consecutive night of strikes against Iranian targets.
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