Oil prices changed on Thursday as traders reacted to a suspected strike on a tanker off the Saudi coast after an escalation in rhetoric from Donald Trump. The president previously vowed to target Iranian bridges and power plants in retaliation for any attack on ships in the Strait of Hormuz, triggering oil price change.
Oil price rises after Donald Trump’s threats to Iran
Brent crude for July delivery advanced 4.6% to $98.44 per barrel. Meanwhile, U.S. West Texas Intermediate crude futures climbed around 3.8% to $90.14 per barrel. This is the highest since June 8, reversing earlier losses as the geopolitical temperature spiked.
On X, th the United Kingdom Maritime Trade Operations confirmed that a tanker came under fire roughly 70 nautical miles southwest of Al Shuqaiq. An unknown projectile struck the vessel, starting a fire that the crew fought without reported casualties.
The attack landed hours after Donald Trump linked Iranian actions at sea and American military force. “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,” Trump posted on Truth Social.
Tehran did not stay silent. An Iranian military source told the state-run Tasnim News Agency that any U.S. strike on a bridge or power plant inside Iran would trigger immediate retaliation. The source warned that energy facilities and infrastructure across the region where the U.S. holds interests would become targets (via CNBC).
The threats unravelled what remained of a U.S.-Iran ceasefire. Secretary of State Marco Rubio acknowledged on Wednesday that Iran was not being “serious” about reaching an agreement. He further insisted that Washington remained “committed to diplomacy.” Markets, however, are pricing in disruption rather than dialogue.
The strait remains a critical chokepoint for global energy supplies. With threats now extending beyond vessels to bridges and power plants, traders are bracing for a prolonged period of uncertainty that could keep upward pressure on oil prices.
Originally reported by Devanshi Basu on Mandatory.