ISLAMABAD (Kashmir English): The oil prices worldwide experienced a significant increase after US President Donald Trump delivered a direct nuclear warning to Iran.
The price of US crude oil reached $97 per barrel after rising 3 percent, while Brent crude, which serves as the global standard, rose 2.2 percent to $96.86 per barrel.
The price jump occurred after Trump made a statement on Truth Social, which announced the United States will keep its military presence near Iran until both sides achieve a complete and authentic treaty.
The United States will respond forcefully to any Iranian conflict, according to his announcement, while he declared that nuclear weapons development will remain forbidden to Iran under all circumstances.
Trump also emphasized that the Strait of Hormuz functions as one of the essential maritime routes for international trade, which must maintain its operational status.
The waterway serves as a route through which almost 20 percent of the world’s total oil production moves. The energy markets worldwide experience direct consequences from any operational interruptions at this location, which explains why traders responded to his statements.
The markets show high sensitivity toward any events related to Iran and the Gulf region. Political conflicts in that region lead to rising oil prices. The present oil price surge demonstrates this established trend.
The situation continues to evolve. Analysts predict prices will increase in the next few days because of escalating tensions and upcoming diplomatic negotiations, which will either succeed or fail.
Oil Prices Dropped After Ceasefire
Earlier, the international community now experiences positive results from Pakistan’s diplomatic work, which helps to reduce international conflicts and maintain crucial economic markets.
The United States and Iran established a ceasefire agreement through Pakistan’s diplomatic work, which resulted in a 19 percent decrease in global oil prices. The price of Brent crude oil has fallen to approximately $90 per barrel.
The international stock markets have shown positive results because all major indices have experienced upward movements. The global business community feels relieved because the risks of extended conflict have decreased, which had created worries about possible economic disturbances.
Iran accepted Pakistan’s request for a two-week ceasefire, according to reports that received approval from the new Supreme Leader of the country. Iranian media reported that former US President Donald Trump experienced political damage because of his aggressive comments toward Iran.
Iranian Foreign Minister Abbas Araghchi announced that Iran would stop its attacks if other countries ceased their military strikes against the nation. He said that his team would work with the Iranian military to establish safe passage through the Strait of Hormuz for two weeks.
