Oil prices surge after Iran warns of potential US ground operation
Oil extraction at drilling rigs (Photo: Getty Images)
Global oil prices rose on Sunday after Tehran warned of a possible US ground invasion, according to CNN.
Brent crude, the global benchmark, increased by 2.47% to $107.92 per barrel, while US crude rose 2.94% to $102.57 per barrel.
CNN also notes that stock futures fell on Sunday: Dow futures dropped 0.53% (241 points), S&P 500 futures fell 0.46%, and Nasdaq futures declined 0.48%.
CNN reports that the war in Iran has caused the largest oil disruptions in history due to the closure of the Strait of Hormuz, through which 20% of the world’s oil passes. Strikes targeting oil and gas facilities have also driven up gasoline prices.
“Americans are paying for the effects of the war at the pump: a gallon of gas in the US cost $3.98 on average Sunday,” the CNN article states.
Trump administration is in panic
The sudden shift in the oil market following Iran’s closure of the Strait of Hormuz has had a negative impact on the US. Fuel prices in the country spiked, causing panic within President Donald Trump’s administration, as this is a significant problem ahead of the elections.
Washington then focused on the Strait of Hormuz and called on NATO allies for help to send warships to the region. However, US allies in the Alliance refused Trump’s request, prompting him to consider retaliatory measures, though he reportedly ruled out taking that step.
