Oil prices climbed 4% above $113 a barrel as tensions between the United States and Iran intensified over the Strait of Hormuz. President Donald Trump accused Tehran of fabricating attacks and mine incidents to push up oil prices before the November 3 midterm elections.
Trump claim follows Iran’s warning that it could strike US bases over continued ship movements.
In a post on Truth Social, Trump accused Iran of making up reports of ship attacks and sea mines to drive up oil prices before the U.S. midterm elections.
“Iran is doing everything they can to drive up the price of Oil before the U.S. Midterm Election.”
He added that Iran was “making up fake hits, mines, and everything else.” Trump also reiterated that Iran would not be allowed to obtain a nuclear weapon. However, reports of burning tankers and mine incidents have added to uncertainty over the actual security situation in the region.
He also claimed that more oil was passing through the Strait of Hormuz than before the conflict began, challenging claims that oil supplies have fallen. During the same period, Persian Gulf oil exports averaged around 24 million barrels per day.
Iran issued a warning that it would target US bases in the region if commercial vessels continued using the US-backed southern Omani corridor through the Strait of Hormuz.
Earlier on, Iran’s Revolutionary Guard Navy said that it had struck four oil tankers carrying out ship-to-ship oil transfers in the northern Persian Gulf, leaving all four burning. Iran also said three other vessels had hit naval mines in the western part of the strait.
Responding to this, Trump said the U.S. was not negotiating with Iran and that something could happen “soon.”
He repeated his warning that “something could happen soon.”
Following this announcement, Brent crude oil price rose more than 3.9% to above $113 a barrel, reaching a five-month high.
The concerns also followed reports that Yemen’s Iran-backed Houthi militants launched drone and missile attacks on a civilian airport in Dammam and a Saudi Aramco oilfield, forcing staff to evacuate.
The U.S. also ordered diplomats and staff to leave some posts in Saudi Arabia, raising concerns about rising inflation and future central bank decisions.
The impact extended beyond oil. Bitcoin fell nearly 4% over 24 hours, reaching a low of $81,273 as investors reacted to rising geopolitical risks.
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