New York – Global oil prices recorded a notable increase of more than 1% during today’s trading, driven by optimistic statements from US President Donald Trump regarding Chinese demand, coinciding with the continued geopolitical anxiety in vital waterways, despite Iranian attempts to calm concerns about navigation.
Brent and US crude gains
According to market data reported by Reuters, Brent crude futures rose $1.17, or 1.11%, to $106.89 a barrel. Meanwhile, U.S. West Texas Intermediate crude futures climbed $1.10, or 1.09%, to $102.27 a barrel by 02:52 GMT.
Trump’s statements and Chinese appetite
This price surge came after US President Donald Trump stated that China had shown a clear desire and strong interest in purchasing oil from the United States. These remarks bolster expectations of increased US exports to the world’s largest energy importer, easing concerns about a global supply glut.
In a related development, Trump, in an interview with Fox News, reiterated his hardline stance on the Iranian issue, asserting that he would not be “more patient” with Tehran. He urged the Iranian leadership to reach a swift agreement with Washington, warning against the continuation of tensions that have disrupted global energy supplies.
Strait of Hormuz tensions
On the ground, energy markets remain under pressure due to concerns about ship security and potential seizures in the Arabian Gulf region. Despite Iran’s announcement that approximately 30 vessels recently transited the Strait of Hormuz safely, investors remain apprehensive about the possibility of surprise attacks that could disrupt crude oil flows. These persistent geopolitical concerns act as a “risk premium,” preventing prices from declining, particularly as the regional confrontation enters a more complex phase that directly impacts import costs and marine insurance premiums.
