The US and Iran conflict is persisting on despite the tremendous efforts for its end. The surging fuel prices are making America impatient while Iran still holds steady for their demands.
Oil prices rose Monday as U.S. President Donald Trump warned that Iran “better get moving” amid a deadlock in peace talks, while experts pointed to record low inventories.
International benchmark Brent crude futures for July rose 0.64% to $109.96 a barrel. U.S. West Texas Intermediate futures for June advanced 0.55% to $106 per barrel.
Trump said a Truth Social post on Sunday that “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” adding that “TIME IS OF THE ESSENCE!”
While a fragile ceasefire was reached in April, tensions between Iran and the U.S. continue with Tehran keeping the Hormuz waterway mostly closed, while the Trump administration continues to blockade Iranian ports.
The strait, prior to the war, saw nearly a fifth of the world’s oil and gas supply flow through it.
The International Energy Agency, in its latest monthly update, cautioned that oil inventories globally are depleting at a record pace as the Strait of Hormuz remains closed. “Rapidly shrinking buffers amid continued disruptions, may herald future price spikes ahead,” the IEA said.
Europe faces potential oil shortage
Jeff Currie, Executive Co-Chairman at Abaxx Commodity Exchange, told CNBC’s “Squawk Box Europe” that oil supply concerns will intensify as inventories are depleted.
“Anybody who gets their hands dirty in this business is telling you this is bad,” he said. “The Iranians want to inflict pain. It’s not the price of oil that matters here — it’s the availability of oil.”
“There is no physical shortage of oil yet. We could hit that in Europe by the end of the month. The market isn’t so worried yet…but by the end of May bank holiday in the UK and Summer driving season in the US, that’s when we’ll feel it.”
