Oil prices have stayed volatile after Trump's warning about the escalation of the US-Iran conflict. On Tuesday, March 31, President Donald Trump had set a deadline for Iran to cease hostilities and reopen shipping routes through the Strait of Hormuz.
Following this announcement, global oil prices started to rise sharply. As of April 6, the price is still above the $100-per-barrel mark.
According to early trading prices, the US benchmark West Texas Intermediate (WTI) rose by 1.86% to $113.62 per barrel. The price of the North Sea Brent crude also increased by 1.16% to $110.30 per barrel during the market opening.
After Trump signaled that attacks on Iran would continue, the WTI ended the session up by more than 11%. In addition, the price of Brent surged by nearly 8%, marking the highest price increase since 2020.
On April 5, Trump had also made a post on Truth Social, warning about potential strikes on Iranian infrastructure if the demands were not met. Trump wrote, “ Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!”
On April 5, a virtual meeting was held to review current oil market conditions and analyze the future outlook and its impact on the general public. The meeting included eight OPEC+ members: Russia, Saudi Arabia, Iraq, Kuwait, the UAE, Kazakhstan, Oman, and Algeria.
The Organization of the Petroleum Exporting Countries (OPEC) has announced a production adjustment of 206,000 barrels per day. This decision is expected to come into effect in May 2026. “With the conflict now expected to last at least into deep April, the barrel math becomes increasingly grim,” Ryan McKay, senior commodity strategist at TD Securities, explained in a Thursday note to clients.