Oil prices rose on Monday following a warning from U.S. President Donald Trump to Iran, urging the country to act swiftly amid stalled peace negotiations. Meanwhile, experts attributed the price increase to record-low global oil inventories. The international benchmark, Brent crude futures for July, increased by 1.98 percent to reach USD 111.42 per barrel. In parallel, U.S. West Texas Intermediate futures for May advanced by 2.43 percent to USD 107.98 per barrel, marking the highest level this month.
President Trump’s weekend warning to Iran underscores the persistent deadlock between Washington and Tehran regarding a peace agreement and the reopening of the Strait of Hormuz, raising the prospect of a return to armed conflict. In a post on Truth Social on Sunday, Trump stated, “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” Although a fragile ceasefire was reached in April, tensions remain high, with Tehran keeping the Hormuz waterway largely closed and the Trump administration continuing to blockade Iranian ports. Prior to the current conflict, the strait facilitated the passage of nearly one-fifth of the world’s oil and gas supply.
Crude Oil Inventory
The International Energy Agency, in its latest monthly update, cautioned that global oil inventories are depleting at a record pace as the Strait of Hormuz remains shut. The agency warned that rapidly shrinking buffers amid ongoing disruptions could herald future price spikes. Further compounding these concerns, a report from Swiss bank UBS last week indicated that if demand for oil remains unchanged month over month, inventories will approach an all-time low of 7.6 billion barrels by the end of May.
