Oil prices rise as President Trump threatens further military action against Iran, stoking supply disruption fears in the Persian Gulf.
West Texas Intermediate crude oil advanced to $79.20 per barrel in Asian trading, extending a three-day rally. The gains follow President Trump’s warning of additional strikes on Iranian infrastructure if Tehran refuses negotiations, escalating tensions in the Strait of Hormuz.
Prices had softened after Persian Gulf producers boosted exports under an interim peace deal. However, the reinstated US blockade and threats of targeted attacks on bridges and power plants revived supply concerns. Markets had expected a 3.8% annual US inflation rate in June, but softer data at 3.5% eased Fed rate hike fears, further supporting risk assets.
The White House later abandoned plans for a 20% cargo transit fee, citing future Gulf investments as compensation. The policy shift failed to offset broader geopolitical risks, leaving oil markets volatile.