Oil Jumps: Iran Protests & Trump’s Call Impact Crude Prices | Mariner News
Oil prices jump significantly as geopolitical tensions escalate following renewed protests in Iran and strong statements from former U.S. President Donald Trump. Brent crude futures settled up $1.60, or 2.5 percent, at $65.47, while West Texas Intermediate (WTI) climbed $1.65, or 2.8 percent, to $61.15 per barrel. These sharp increases highlight the market’s sensitivity to instability in the Middle East, a crucial region for global energy supply.
Geopolitical Tensions Fueling Crude Prices
The immediate catalyst for this surge was Trump’s encouragement for Iranian protesters to “take over their country,” coupled with reports of a violent crackdown. This rhetoric, perceived as postponing diplomatic talks, intensified fears of potential supply disruptions from the Islamic republic. Analysts at Barclays noted that unrest in Iran has added a significant $3-$4 per barrel in geopolitical risk premium to current oil prices, reflecting heightened market uncertainty.
Potential Impact on Global Oil Supply
Beyond the immediate unrest, the long-term implications for global oil supply are considerable. Discussions around potential U.S. tariffs on countries doing business with Iran suggest a significant reduction in crude availability. According to Mizuho Securities analyst Bob Yawger, if all nations were to cease purchasing Iranian barrels, it could reduce global supplies by an estimated 3.3 million barrels per day. Such a reduction would tighten the energy markets considerably, impacting prices worldwide.
The ongoing situation underscores how political instability in key producing nations can quickly reverberate through international energy markets, keeping crude prices volatile and buyers on edge.
