Oil prices surge nearly $1 as markets weigh potential supply disruptions from renewed US-Iran tensions.
US President Donald Trump is evaluating military options against Iran after Tehran rejected Washington’s latest proposal. Officials said Trump seeks a diplomatic resolution but may resume strikes if Iran refuses to comply with demands, including halting uranium enrichment and ceasing regional proxy activities.
Iranian state media dismissed the US memo as a demand for surrender, escalating tensions that had eased following a pause in hostilities earlier this year. Prior US military actions in 2019 and 2020 targeted Iranian-backed militias and nuclear facilities, disrupting global oil supplies and spiking prices.
WTI crude oil jumped from $98.87 to $99.83 on the news, reflecting investor concerns over supply risks. Risk sentiment shifted toward caution as geopolitical uncertainty weighed on markets.