Oil prices have surged sharply due to Trump's statements and the threat to shipping near Iran
Global oil prices jumped by more than 1% on May 15 amid statements by U.S. President Donald Trump regarding China and Iran, as well as new concerns about the safety of shipping in the Strait of Hormuz.
This was reported by Reuters.
Brent crude futures rose by $1.17, or 1.11%, to $106.89 per barrel.
Meanwhile, U.S. West Texas Intermediate (WTI) crude rose by $1.10, or 1.09%, to $102.27 per barrel.
The day before, Donald Trump stated that China is interested in purchasing oil from the U.S.
Additionally, in an interview with Fox News, the U.S. president noted that his patience with Iran is “running out” and called on Tehran to reach an agreement with Washington.
Events in the Strait of Hormuz—one of the world’s key oil transport routes—put additional pressure on the oil market.
On Thursday, Iranian forces seized a vessel near the United Arab Emirates, after which the ship headed toward Iranian waters.
Meanwhile, the White House reported that Donald Trump and Chinese leader Xi Jinping agreed on the need to maintain open navigation through the Strait of Hormuz.
The Islamic Revolutionary Guard Corps stated that only 30 ships had passed through the Strait of Hormuz since Wednesday evening, whereas before the war began, that figure was about 140 ships per day.
It was also reported that an Indian cargo ship carrying livestock from Africa to the UAE sank off the coast of Oman.
Investors fear that an escalation of the situation surrounding Iran and the Strait of Hormuz could seriously affect global oil supplies.
Oil prices rose amid anticipation of a meeting between Donald Trump and Xi Jinping. Traders are focusing on possible signals regarding a resolution to the conflict with Iran, which has affected global oil supplies.
As a reminder, Trump arrivedin China for the first time in nearly a decade.
