Global oil prices edged lower in early Asian trading on Tuesday after a sharp surge that pushed crude close to $120 per barrel a day earlier, as tensions surrounding the conflict involving Iran, Israel and the United States continued to shake energy markets.
The modest drop followed comments by U.S. President Donald Trump, who suggested the war with Iran could end “pretty quickly,” though he added that the United States had not yet “won enough.”
Despite the easing in prices, analysts say markets remain on edge as the possibility of supply disruptions in the Middle East threatens global oil flows.
Trump also issued a strong warning to Tehran over the security of the Strait of Hormuz, a narrow waterway that carries roughly 20 percent of the world’s oil shipments.
In a post on his social media platform Truth Social, the U.S. leader warned that any attempt by Iran to block oil shipments through the strait would trigger a far more devastating response from Washington.
“If Iran does anything that stops the flow of oil within the Strait of Hormuz, they will be hit by the United States twenty times harder than they have been hit thus far,” Trump said.
He further warned that the United States could target critical sites in Iran, saying the country could face “death, fire and fury” if tensions escalate further, though he expressed hope that such an outcome could still be avoided.
Iran has also issued its own warning, declaring that it would not allow “one litre of oil” to be exported from the region if U.S. and Israeli military actions continue.
The standoff has already affected shipping activity in the Gulf, with reports indicating that maritime traffic through the Strait of Hormuz has slowed significantly, raising fears of disruptions to global energy supplies.
Meanwhile, Iran is facing a leadership transition as Mojtaba Khamenei assumes the role of supreme leader at a time analysts say presents one of the most serious challenges to the country’s ruling establishment in decades.
