President Donald Trump threatened to bomb Iranian infrastructure as oil prices rose following a tanker strike in the Red Sea.
Oil prices climbed on Thursday after a tanker was struck by an unknown projectile in the Red Sea, sparking a fire onboard. The price increase follows a warning from President Donald Trump, who stated that the U.S. will bomb an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz. These tensions follow the collapse of a U.S.-Iran ceasefire and the recent deaths of three American service members. Brent crude futures for September delivery gained 2% to $95.99 per barrel, while U.S. West Texas Intermediate crude futures advanced approximately 1.7% to $88.27 per barrel. Investors are currently weighing these rising energy costs alongside concerns over artificial intelligence spending and a busy earnings season. While Asian markets saw broad gains, U.S. equity futures slipped early as the market reacted to the shifting geopolitical landscape and new data on inflation math.