Trump's Iran Warning Ignites Oil Prices, Hormuz Risk

Brent crude rose 5.83% to $91.67 per barrel, while WTI increased 5.55% to $87.60 per barrel. This rebound followed a sharp 4.6% drop on Monday, which was the steepest daily decline since February 2.

President Trump's remarks on Truth Social threatened severe retaliation against Iran if it attempted to block the Strait of Hormuz, a critical chokepoint for global energy shipments. He stated the US would target "easily destroyable" sites, framing the warning as a protective measure for global trade, particularly benefiting China and other oil-dependent nations.

Concurrently, Iranian Foreign Minister Abbas Araghchi dismissed the possibility of negotiations with the US, citing a "very bitter experience," reinforcing expectations of persistent Middle East tensions. US Treasury Secretary Scott Bessent also confirmed a 30-day temporary exemption for Indian refineries to purchase Russian oil, aiming to stabilize global supply amidst the escalating regional conflict.

The International Energy Agency (IEA) has launched a record oil stock release, stating the Middle East war has caused the largest oil supply loss in history, exceeding the 1973 crisis, with 400 million barrels released.