Oil Prices Jump to $109 After Trump Threatens Iran Power Plants
Oil prices jumped 8% to $109.74 per barrel after President Trump threatened to strike Iranian power plants and energy facilities. Trump gave Iran until Monday to reopen the Strait of Hormuz, a key oil shipping route.
Oil prices surged Sunday after President Donald Trump issued a profanity-laden threat against Iran's energy infrastructure. Brent crude prices jumped as much as 8% to $109.74 per barrel, reversing Wednesday's drop when the international benchmark had fallen below $100.
Trump threatened to strike Iranian energy facilities if Iran doesn't reopen the Strait of Hormuz by Monday. The strait is a narrow waterway that handles roughly one-fifth of global oil shipments.
The price spike erased gains from earlier in the week when hopes for de-escalation had pushed oil prices down. Markets are now bracing for potential supply disruptions if the conflict escalates.
The Strait of Hormuz connects the Persian Gulf to international waters and is considered one of the world's most important oil chokepoints. Any military action in the region could severely impact global energy supplies.
Higher oil prices mean more expensive gas at the pump for drivers. The Strait of Hormuz handles about 20% of the world's oil shipments, so any conflict there could spike energy costs globally.
Watch for Iran's response by Trump's Monday deadline and whether the Strait of Hormuz remains open to shipping.
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