Petroleum prices shot higher Wednesday after U.S. President Donald Trump declared that Iran will “pay the price” for being too slow to negotiate a peace deal.
U.S. crude oil futures for July delivery jumped nearly 2% to $89.72 per barrel as of 7:15 a.m. ET, Brent futures, the international benchmark, for August delivery, rose 1.3% to $92.74 per barrel.
The price movements came after Trump issued a social media post that countered previous claims that the hostilities with Iran were near an end.
"Iran’s Military is a complete and total mess. Much of it, like their Navy and Air Force, doesn’t even exist anymore - They have been completely defeated. Iran is all talk and no action," Trump said on Truth Social. "The Bully of the Middle East is DEAD!!! They’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!"
Earlier, the U.S. military said it had completed strikes against Iranian military targets near the Strait of Hormuz.
U.S. forces carried out strikes on Iran on Tuesday night after an American Army Apache helicopter was shot down a day earlier, according to U.S. Central Command. Centcom described the operation as a defensive and measured response to what it called Iranian aggression.
Rystad Energy said the shutdown of 11.8 million barrels a day of production across six Gulf producers has created the most severe oil supply disruption in modern history. The consultancy estimates cumulative production losses have reached one billion barrels and warned that each additional month of conflict could erase another 350 million barrels of output.
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