Why it matters:
Trump’s renewed hardline stance toward Tehran—issued just as U.S.-Iran nuclear talks stalled—jolted oil traders and triggered a nearly 2% rise in crude prices. The move could further destabilize global energy markets already facing uncertainty from OPEC+ supply decisions and weakening economic signals from the U.S.
The big picture:
Trump warned that “all oil or petrochemical purchases from Iran must stop,” vowing immediate sanctions against violators.
The threats followed delays in U.S.-Iran talks, originally scheduled for May 2, which were postponed at Oman’s request.
Iranian officials, including Foreign Ministry spokesperson Esmail Baghaei, confirmed that a new date would be announced later.
Key points:
- Price movement:
- Brent crude rose $1.07 (+1.8%) to $62.13 per barrel.
- West Texas Intermediate (WTI) climbed $1.03 (+1.8%) to $59.24 per barrel.
- Market reaction:
- OPEC+ members are debating whether to increase output again in June.
Go deeper:
As Trump’s threat caused a short-term oil price bump, data released Wednesday showed the U.S. economy contracted in Q1—the first negative growth in over a year—partly due to uncertainty caused by Trump-era tariffs and import surges. According to a Reuters poll, those tariffs may help push the global economy toward recession this year. With OPEC+ members divided and Washington’s Iran policy again in flux, volatility in oil markets is poised to continue.
Mojtaba Darabi
