WTI Crude Oil Futures Rise over 3% to $106.1 a Barrel Amid Trump's Threats of Escalating Conflict with Iran

Oil prices continued their upward trajectory following US President Donald Trump's threats to intensify hostilities against Iran, fueling concerns that the conflict shows no signs of abating and global markets may face increased turmoil.

West Texas Intermediate climbed as much as 3.13% to $106.1 per barrel after settling at its highest level since 2022 on Monday. Trump stated in a social media post that the US would destroy power plants, oil facilities, and potentially desalination infrastructure if Iran fails to reopen the Strait of Hormuz.

The conflict has effectively blocked the critical shipping route, cutting off supplies of crude oil, natural gas, and products like diesel from global markets and driving prices upward. Despite Trump's repeated claims that a deal with Iran is near, the US has deployed additional troops to the region as the Middle East conflict enters its fifth week.

"The overall sentiment continues to be one of limited progress toward any resolution," said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. "With 10–12 million barrels per day still effectively absent from the market, reserves are diminishing, and verbal interventions to lower crude prices are proving less effective."

Iran-backed Houthi forces in Yemen entered the conflict over the weekend by launching missile attacks on Israel, and Tehran is urging the militants to prepare for renewed assaults on Red Sea shipping. This development could jeopardize oil supplies from alternative routes outside the Strait of Hormuz, such as Saudi Arabia's Yanbu terminal.