Oil prices rise after US President Trump's threats against Iran

The US President is threatening Tehran with an “economic war” due to stalled negotiations. Trump's words have immediate consequences: the price of Brent crude oil increases significantly.

Oil prices have risen significantly following new threats from US President Donald Trump against Iran. Over the course of the day, they significantly increased their price gains from early trading.

A barrel (159 liters) of Brent crude oil from the North Sea for delivery in October was traded at $93.76, more than two percent higher than the previous day. At times it rose to $94.71, its highest level since the end of July.

Developments in the Iran war remain the dominant topic on the oil market. After prices had remained in a comparatively narrow trading range in the past few days, they have increased again since morning trading. The US President had previously threatened Iran with an “economic war” due to the lack of success in negotiations with Tehran. "Today I am announcing the most destructive economic operation ever carried out against any country," Trump's statement said.

Trump also made it clear that countries would face economic consequences if they supported Iran. The government in Beijing then warned the USA of further sanctions. China is one of the countries that would be particularly affected by Trump's threat. The People's Republic is Iran's largest trading partner and receives a large proportion of its oil exports.

According to analyst Tamas Varga from trading firm PVM Oil Associates, oil prices are being driven up by "Trump's latest broadside." The US President's threat of an economic war against Iran is perceived by the market as an escalation of the simmering conflict.