Crude oil prices rebound as Trump warns of more attacks on Iran; Brent nears $95 per barrel

Crude oil prices regained strength in Wednesday’s trade, recovering all of its previous day’s losses after US President Donald Trump warned that attacks on Iran would intensify following airstrikes carried out early in the day.

“We’re going to hit them again hard today,” Trump told reporters at the White House. However, he declined to say whether he would follow through on earlier threats to target bridges and utility plants in Iran. He also urged Tehran to sign a deal with the United States, AP reported.

Trump further revealed that the United States had been taking oil out of Iran. “I’m just announcing today for the first time, but we’ve been taking out millions of barrels of oil, millions of barrels every night,” Trump said, adding that Iran “just figured it out.”

Reacting to Trump’s remarks, Brent crude extended its rebound, rising $3.60 per barrel to hit the day’s high of $94.36, while WTI crude futures recovered $4 per barrel to $91.38.

Trump’s threats came shortly after he said that Iran was taking “too long to negotiate a deal” and warned that “now they will have to pay the price.”

After a brief pause, tensions in the region escalated again after the US launched fresh strikes on Iran, following Trump’s accusation that Tehran was responsible for the crash of an American attack helicopter.

Iran retaliated with attacks targeting neighbouring countries in the region. Bahrain, Kuwait, and Jordan — all of which host US troops — reportedly came under Iranian fire.

In the previous session, Brent crude had plunged 3%, while WTI crude futures declined nearly 3.4% to an intraday low of $86 per barrel, the weakest level since 17 April, when Iran briefly stated that the vital Strait of Hormuz shipping route was fully open.

Tensions remain at a boiling point this week

It marked the second time this week that back-and-forth strikes have tested the fragile two-month ceasefire. On Monday, Iran and Israel exchanged fire in their first direct attacks since the US brokered a ceasefire with Tehran two months ago.

The fragile ceasefire in West Asia has been tested repeatedly, with Iran and the US-Israel alliance accusing each other of multiple violations, keeping crude oil prices highly volatile.

Although attacks have resumed several times during the ceasefire period, US President Donald Trump and other senior US officials have repeatedly expressed optimism about the possibility of a near-term peace deal, though no concrete breakthrough has materialised.

Trump suggested on Monday that a deal to end the conflict could be reached within days. Since the US declared a ceasefire with Iran on 7 April, Trump has publicly stated several times that a peace and nuclear agreement with Tehran was close or nearing completion. So far, none of those predictions has materialised.

Highlighting the fragile nature of the recent pullback in tensions, Iranian President Masoud Pezeshkian said in a post on Tuesday that Iran had “neither abandoned the battlefield nor the negotiating table.”

(With inputs from AP)

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