Brent crude $106 after Trump threatens Iran oil hub
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- Brent crude rose to over $106 per barrel on Sunday, more than $3 above Friday’s close, after Trump’s threat to strike Iran’s oil hub.
- Trump said on social media that U.S. attacks on Iran’s Kharg Island avoided oil infrastructure, but warned he would “immediately reconsider” if Iran interferes with ship passage through the Strait of Hormuz.
- Treasury Department announced a temporary waiver of sanctions on Russian oil in tankers to ease supply constraints.
- Energy Department planned to release 172 million barrels of crude from the Strategic Petroleum Reserve over about 120 days, part of a coordinated 400‑million‑barrel release through the International Energy Agency.
- Chris Wright predicted the conflict would end within several weeks and that supplies would rebound, while cautioning there were no guarantees and consumer prices could rise further.
- White House officials discussed forming a coalition of multiple countries to escort tankers through the Strait of Hormuz, though no precise timetable was given.
- AAA reported average U.S. regular gasoline price $3.70 per gallon, up roughly 70 cents since the war began.
Why it matters: The price jump hurts consumers, with U.S. gasoline climbing to $3.70 per gallon, while oil producers and exporters may benefit from higher revenues. The market reaction also underscores the limited impact of U.S. diplomatic threats, as traders see no near‑term easing of supply constraints.
