(RTTNews) – After rising sharply in the past two sessions, crude oil saw another significant rise on Thursday as US President Donald Trump issued an ultimatum for Iran to come to the negotiating table or face worse attacks by June 2025.
As Iran shies away from US threats, traders are nervous about potential long-term supply disruptions.
WTI crude oil for March delivery was last seen trading $2.23 (or 3.53%) higher at $65.44 a barrel.
Warning that Iran is running out of time to reach a deal with the US on its nuclear policies, Trump said any attack by the US military this time would be much worse than those carried out for 12 days in June 2025.
Reports of Iran resuming its nuclear program and the recent brutal repression of civilian anti-government protests by the ruling regime have prompted Trump to lash out at Iran.
However, Iran’s Foreign Minister Abbas Araghchi responded by saying that its forces were ready to retaliate against the US with “the finger on the trigger” and adding that Iran was ready for a “fair and equitable” settlement, but not for coercion.
Reportedly, Iran has messaged commercial ships passing through the Strait of Hormuz that it will conduct “live fire” naval exercises in the coming days.
Earlier this month, the US military invaded Venezuela and took full control of Venezuela’s oil reserves as well as production and supplies. Experts are concerned about a similar mission in Iran.
Ahead of the January 30 deadline, Republican and Democratic party leaders are trying to reach an agreement to resolve contentious issues and prevent a partial government shutdown.
Earlier, some Democrats had pledged not to support any funding bill that includes funding for the Department of Homeland Services. His stance reflects public anger following the recent shooting of two US citizens by immigration officers in Minneapolis.
The previous shutdown lasted 43 days, resulting in severe financial losses and many federal employees being laid off.
In the Russia–Ukraine war, Ukrainian President Volodymyr Zelensky said that France is offering its aircraft, missiles for air defense and aerial bombs to assist Ukraine in the fight against Russia.
Speaking about a US-brokered peace proposal to end the four-year-long war, US Secretary of State Marco Rubio said ownership of Ukraine’s Donetsk region is a key issue in the talks.
Analysts believe an agreement may take longer than expected as both sides balk at territorial concessions.
Yesterday, the US Federal Reserve kept interest rates at current levels, in line with market expectations.
Data from the American Petroleum Institute yesterday showed that US crude oil inventories fell by 0.25 million barrels for the week ending January 23.
For the same period, data from the US Energy Information Administration showed that crude oil reserves declined by 2.296 million barrels. Meanwhile, gasoline and distillate fuel inventories rose slightly higher.
The OPEC alliance, meeting on February 1, is expected to stick to its earlier decision to “pause” any productivity increases for the first quarter of 2026.
In OPEC’s World Oil Outlook report, Abderzak Benyosef, head of energy studies, estimated that the global oil industry would need $18.2 trillion in cumulative investment to meet the projected growth in demand.
The US Dollar Index was last seen trading at 96.26, down 0.18 points (or 0.19%).
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