NEW YORK: Oil prices closed up nearly USD2 on Wednesday after President Donald Trump said the US is going to attack Iran “very hard” if no peace deal is finalized. Brent crude futures settled at USD93.10 a barrel, up USD1.65 or 1.8 percent.
US crude futures finished at USD90.03 a barrel, up USD1.83, or 2 percent. Both contracts jumped about USD3 in afternoon trading after Trump reiterated that Iran would be attacked again following an exchange of fire overnight that was one of the most significant since an April ceasefire.
Prices pared gains toward the session’s close after Trump said the US military secretly escorted ships carrying more than 100 million barrels of oil out of the Strait of Hormuz.
READ MORE: Oil prices rise after Trump says Iran must pay price
Global oil consumption is roughly 100 million barrels per day. Trump suggested the operation had helped keep prices in check, telling reporters at the White House that crude would otherwise be “at USD250” instead of “USD85–USD90 a barrel”.
His remarks followed a Truth Social post in which he said Tehran would have to “pay the price” for allegedly dragging out negotiations for a peace deal. “Oil prices have shifted from anxiety to apathy and back again amid renewed skirmishes between the US and Iran,” said Phil Flynn, senior analyst at the Price Futures Group.
Prices were also supported by data from the US Energy Information Administration which showed US crude stocks fell sharply last week as refiners scrambled to fill supply gaps caused by the war.
US crude inventories fell by 7.2 million barrels in the week ended June 5, the agency said, a far bigger draw than the 4 million barrels expected by analysts in a Reuters poll.