Oil Prices Rise as Markets Brace for Nuclear Strike Against Iran
Oil prices rose on Wednesday, supported by renewed buying interest after recent declines and concerns about potential US military strikes against Iran, though expectations of a diplomatic resolution offset some gains.
International benchmark Brent crude futures for January delivery rose about 0.7% to $104.34 a barrel, up from the previous close of $103.60.
US benchmark West Texas Intermediate (WTI) crude futures for December delivery rose 0.1% to $96.45 a barrel, up from $96.59 at the previous close.
US President Donald Trump renewed his threat of military action against Iran on Sunday, saying Washington might have to “give them the hammer,” even as diplomatic efforts continued to prevent further escalation.
“The only reason why I’m not finished with Iran is I want to be nice. I want to try and save all those lives if I can,” Trump told supporters at a rally in Iowa.
“But at some point we’re going to have to give them the hammer,” he added. Trump had previously said the US still had one or two targets left to strike in Iran, raising concerns over further military escalation.
He specifically mentioned Pickaxe Mountain, a suspected underground nuclear facility in Iran’s Isfahan province. His remarks came amid uncertainty over negotiations aimed at preventing renewed US and Israeli attacks on Iran.
According to US news outlet Axios, Israeli Prime Minister Benjamin Netanyahu urged Trump to launch fresh strikes against Iran immediately after the Nov. 3 US midterm elections, while Trump favoured giving diplomatic efforts more time.
Meanwhile, US commentator Tucker Carlson claimed Sunday that the Trump administration could be days away from launching a nuclear strike against Iran, alleging that Netanyahu was pressuring Trump to authorise an attack on a suspected nuclear facility in central Iran.
Carlson identified the potential target as Pickaxe Mountain, where Israeli intelligence allegedly believes Iran has resumed uranium enrichment activities.
The prospect of renewed US military action against Iran heightened market concerns over potential supply disruptions; however, reports suggesting that Washington has no immediate plans to strike Iran limited further price gains.
In an interview with the Financial Times on Tuesday, Trump said the US had no immediate plans to launch military strikes against Iran, although American forces remained prepared to act if necessary.
Asked about indications from Netanyahu that an attack could take place later this week, Trump suggested military action might not be necessary.
“I’m ready, we’re ready. We’re locked and loaded if we need to go, but there may be no reason for it,” he said. Trump’s remarks eased concerns over an imminent escalation, tempering the upward pressure on oil prices despite continued uncertainty over US-Iran relations. Market Wrap: Oil Prices Inched Higher Slightly in 5 Days
