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Oil moved higher early Thursday after U.S. President Donald Trump vowed “economic warfare” on Iran and financial penalties for its supporters, as the United Arab Emirates said it was suspending trade with Tehran.
Brent crude futures — the international price benchmark — rose 1.59% to reach $93.08 per barrel as of 4:19 a.m. ET. U.S. West Texas Intermediate futures for September delivery were 1.63% higher at $87.23 in morning trade.
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Brent crude.
In a Truth Social post, Trump said he had provided the Islamic Republic with an opportunity to make a deal. “TRAGICALLY, for them, they have failed to take it,” he said.
“Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale.”
He also threatened “TREMENDOUS Economic Consequences” against any country providing a lifeline to Iran. This includes cash transfers, currency swaps and shipping registries, the president said.
The oil price rise comes after the UAE said Wednesday it was halting all trade and financial transactions with Iran after the Gulf state said it had come under fire from the Islamic Republic on Tuesday.
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The UAE, one of Iran’s key commercial partners, said two ballistic missiles had been launched toward its territory from Iran. Iran’s foreign ministry spokesperson Esmail Baghaei denied the strikes.
The move heaps further pressure on Iran, which is already facing economic sanctions from the U.S., and pushes the prospect of any renewed ceasefire agreement further from view.
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