Oil prices jumped sharply on news that the US blockade of Iran could be sustained for an extended period. Brent crude rose 5.32 percent from the prior close to 109.95 dollars, while West Texas Intermediate (WTI) climbed 5.19 percent to 105.12 dollars per barrel.
In a phone interview with US news outlet Axios, President Donald Trump commented on a potential deal track. Trump made clear he had rejected Iran's recent offer to "open the Strait of Hormuz first and defer the nuclear agreement."
Trump's remarks reinforced market perceptions that US-Iran tensions are unlikely to ease in the near term. The Strait of Hormuz, through which roughly one-fifth of global crude trade flows, remains at the top of supply chain risk maps.
A sharp move in oil ripples through supply chain inputs ranging from freight rates to petrochemical feedstocks. The industry is watching potential bunker fuel price swings and a renewed debate over maritime route optimization.
Key Takeaways:
1. Following Trump's signal that the Iran blockade will continue, Brent crude jumped 5.32 percent to 109.95 dollars.
2. WTI also rose 5.19 percent to 105.12 dollars per barrel.
3. Trump rejected Iran's offer to open Hormuz first and defer the nuclear agreement.
4. The Strait of Hormuz, carrying about one-fifth of global crude trade, remains at the top of supply chain risk maps.
5. The oil shock could ripple through supply chain inputs including freight, bunker fuel and petrochemicals.
