Energy analyst Ole Hvalbye of SEB described the current situation as detrimental both for the Trump administration and the global economy amid escalating tensions in the Middle East. Since the outbreak of conflict in the region, oil and gas prices have experienced significant volatility. As of Monday morning, the Brent crude spot price hovered around $112 per barrel, a slight decline of $0.10, despite having surged over 50% since late February following US and Israeli military actions.
On Sunday night, former US President Donald Trump issued a 48-hour ultimatum to Iran, demanding the reopening of the Strait of Hormuz to maritime traffic. Failure to comply would result in US attacks on Iranian energy infrastructure and nuclear facilities. Iran responded with threats to target energy infrastructure belonging to US allies in the Gulf states if attacked, and Bloomberg reported that Iran might completely close the Strait of Hormuz should the US proceed with its threats.
Investment director Haris Khurshid of Karobaar Capital LP in Chicago emphasized the need for concrete developments rather than escalating rhetoric to influence market movements. The deadline set by Trump is imminent, and the global energy market watches closely as the situation unfolds, with potential implications for supply routes critical to the world’s oil trade.
Read more: e24.no