Crude Oil: U.S. Oil closes above $100, Trump threatens to escalate strikes against Iran

U.S. crude oil prices closed on Monday above $100 per barrel for the first time since the outbreak of the Iran war. U.S. President Donald Trump threatened to further escalate strikes, including targeting key energy infrastructure in Tehran.

WTI futures rose by more than 3%, settling at $102.88 per barrel, the highest level since July 2022.

As more U.S. troops arrive in the Middle East, and Yemen’s Houthi forces backed by Iran join the conflict, oil prices received an additional boost.

Traders warn that if the conflict cannot end soon, energy prices may see even larger increases.

Carl Larry, an oil and gas analyst at Enverus Inc., said, “The market recognizes that the upside risk is greater than the downside risk, and the current strategy is to plan for the worst until there are signs of a pullback in the near term.”

Brent futures swung sharply despite lower liquidity, and traders are increasingly inclined to wait and see. The May contract experienced volatility before expiring on Tuesday, closing at nearly $113 per barrel.

Brent March has risen by about 60%, because the Iran war shock to global markets has sparked concerns about inflation rising and economic growth slowing at the same time.

U.S. Treasury Secretary Bessent said in an interview on Monday that the U.S. will “reclaim” control of the Strait of Hormuz.

But traders still worry that even with escorting measures in place, the strait may not immediately return to safe passage.

Darrell Fletcher, Managing Director of Commodities at Bannockburn Capital Markets, said, “This kind of daily attempt to reassure the market through remarks is gradually losing its effectiveness.”

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责任编辑：李桐