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- Brent crude jumped 2.7% above $90 after Trump’s threat against Oman intensified Strait of Hormuz concerns.
- Tanker traffic remains severely disrupted, raising the risk of tighter global oil and LNG supplies.
- US-Iran talks ended their 60-day window without a deal, leaving diplomacy and military escalation as key market drivers.
Oil markets jumped on Monday after President Donald Trump threatened military action against Oman if the Gulf state interfered with negotiations surrounding the Strait of Hormuz. Brent crude rose 2.7%, moving above $90 a barrel as traders weighed the risk of further disruption to one of the world’s most important energy routes.
The remarks came as a 60-day US-Iran negotiating period expired without a clear agreement, adding another layer of uncertainty to an already fragile situation.
Trump Escalates Pressure on Oman
Trump made the warning during a phone interview with Fox News correspondent Trey Yingst, saying the US would bomb Oman if Muscat obstructed efforts involving the Strait of Hormuz.
The president later repeated his criticism of Oman when questioned by reporters at the White House. His latest comments follow a similar warning made in May, highlighting growing US frustration over Oman’s separate diplomatic engagement with Iran.
Oman has long maintained close ties with Washington while also serving as an important intermediary in regional diplomacy. Iranian media reported that Tehran and Muscat had reached an arrangement concerning traffic through the strategic waterway.
The comments therefore risk complicating a diplomatic process that could influence the reopening of the strait.
Strait of Hormuz Disruption Raises Oil Risks
The economic stakes are significant. The Strait of Hormuz carries about one-fifth of global crude oil and liquefied natural gas supplies, making sustained disruption a major concern for energy markets.
Maritime traffic remains sharply reduced. Only 13 vessels reportedly crossed the strait over the weekend, including three on Sunday.
That limited traffic coincided with a sharp move in oil prices. Brent crude climbed 2.7% to above $90 a barrel, reflecting renewed fears that geopolitical tensions could restrict energy supplies for longer.
For oil importers, shipping firms and energy-intensive businesses, prolonged disruption could translate into higher transportation and production costs.
US-Iran Deadline Ends Without Breakthrough
Monday also marked the end of a 60-day period agreed between Washington and Tehran in June. The window was intended to help address the conflict and Iran’s nuclear program, but no concrete settlement emerged.
The political response to Trump’s Oman comments was immediate. Senator Tim Kaine said he would seek a resolution restricting military action against Oman, while Iran’s Foreign Ministry described discussions with Muscat as difficult but continuing.
US stocks were comparatively restrained. The Dow Jones slipped 0.3% in early trading, while the S&P 500 fell 0.1%, suggesting investors were more cautious about the broader economic impact than the immediate oil-market shock.
The direction of Brent crude may now depend heavily on whether diplomacy can restore normal shipping through Hormuz. Any further military escalation could push energy prices higher, while progress between Iran and Oman could ease supply concerns.
Also Read: Bitcoin Jumps Above $64K as Trump Signals Strait of Hormuz Reopening—Oil Drops 13%
For now, reduced tanker traffic and rising political tensions leave traders focused on developments around the strait. With Brent already above $90, the next diplomatic or military move could determine whether the latest oil surge fades or becomes a broader energy-market shock.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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