Oil prices surge 5% as Trump weighs further Iran escalation
00:35, 11/08/2026, TuesdayU: Update: 00:36, 11/08/2026, Tuesday
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Oil prices climbed about 5% on Monday after US President Donald Trump indicated that a major escalation against Iran remained possible, adding to market uncertainty over negotiations and the future of shipping through the Strait of Hormuz. Brent crude reached $87.7 a barrel, while WTI rose to $82.2 as investors assessed growing risks to global energy supplies.
Oil prices surged on Monday as markets reacted to President Donald Trump’s warning that Washington could pursue a broader military escalation against Iran, raising fresh concerns over the conflict, diplomatic efforts and energy shipments through the Strait of Hormuz.
Brent and WTI extend gains
Brent crude, the international oil benchmark, advanced 5% to $87.7 per barrel at 2005 GMT, its strongest level in almost two weeks. US West Texas Intermediate also gained 5.1%, reaching $82.2 a barrel.
The rise marked a fourth straight session of gains for Brent as traders weighed the possibility of further military action and the risk that disruptions around the strategic waterway could persist.
Trump keeps escalation option open
Trump told reporters at the White House that the US retained the capability to undertake a “massive escalation” against Iran when asked whether such an option remained under consideration.
“Well, we have that certain ability if we want to do that,” Trump said.
He also demanded compensation from Iran for damage he said had accumulated over the past five decades, while dismissing Tehran’s call for war-related compensation as part of negotiations.
Hormuz remains a key market concern
Trump said the Strait of Hormuz was open and “100%” under US control, but acknowledged that Iran could still seek to interfere with maritime traffic. Tehran, for its part, has demanded that Washington end its blockade before agreeing to a full reopening of the waterway.
The Strait of Hormuz is a critical energy corridor through which a substantial portion of the world’s oil and liquefied natural gas supplies is transported, making any prolonged disruption a major concern for global energy markets.
Attacks and US reserves add pressure
Oil prices also received support from reports of weekend attacks involving Saudi Arabia’s Jazan refinery and a tanker operated by Abu Dhabi National Oil Co.
At the same time, US Strategic Petroleum Reserve inventories fell by approximately 6.1 million barrels last week, taking total holdings to about 298.7 million barrels. The figure marks the lowest level recorded since 1983 and adds another layer of concern for energy markets amid heightened geopolitical tensions.