Oil prices jumped above $100 per barrel Monday as President Donald Trump promised prices would drop after the joint U.S.-Israeli military operation targeting Iran’s “nuclear threat” concludes.
Global benchmark Brent crude rose as high as $118 per barrel Monday morning before retreating to around $104, more than $10 above Friday’s close. It marked the first time Brent has surpassed $100 per barrel since the fall of 2022.
The operation against Iran and the regime’s response have disrupted oil tanker traffic through the Strait of Hormuz. Trump said on Sunday night that the oil prices would drop as soon as Iran’s nuclear capabilities were completely destroyed.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!” Trump wrote on Truth Social.
According to AAA, the national average for gasoline rose from $2.99 per gallon one week ago to $3.47 on Monday.
Iran has launched attacks on regional oil facilities, including the Ras Tanura refinery run by Aramco in Saudi Arabia which produces around 550,000 barrels of oil per day. Aramco shut down the facility as a precautionary measure after an Iranian drone attack.
An Iranian drone attack on Monday appeared to target Bahrain’s Bapco oil refinery, the country’s top oil facility, Reuters reported.
Over the weekend, Israel carried out strikes targeting Iran’s oil facilities outside of Tehran saying they were used to fuel its military.
Last week, Trump said he would direct the United States Development Finance Corporation to provide political risk insurance to oil tankers operating near Iran and suggested the U.S. Navy could protect tankers sailing through the Strait of Hormuz.
“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible. No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” Trump said on Truth Social.
Iran threatened Trump on Friday over the potential Navy escorts.
“Iran strongly welcomes the escort of oil tankers and that U.S. forces will be there for the crossing of the Strait of Hormuz. And we are, by the way, awaiting their presence,” said Iranian Revolutionary Guard spokesman Alimohammad Naini. “We recommend that, before making any decision, the Americans remember the fire on the American supertanker Bridgeton in 1987 and the oil tankers that were recently targeted.”
American and Israeli strikes on Iran have continued over the weekend with no clear timeline for when the operation will conclude. Military officials have said that the campaign will end once Iran’s nuclear and missile production capabilities are destroyed.
