Oil Hits 6-Month Highs as Trump’s Military Threats Against Iran Fuel Rally

Global oil prices surged to near six-month highs, solidifying their first weekly gain in three weeks. This spike follows a significant escalation in rhetoric from President Donald Trump, whose recent threats against Iran included explicit mentions of potential military action. Notably, the energy sector was already experiencing a broad rally even before this latest geopolitical escalation intensified. Analysts at ING Group suggest that this risk premium will likely remain embedded in prices for at least another two weeks as the market assesses Washington's 15-day deadline for a new nuclear deal. Traders are increasingly wary that any military confrontation could lead to major supply disruptions in the Middle East, pushing Brent and WTI benchmarks higher. The combination of pre-existing market strength and new military threats has created a highly volatile environment for global energy flows.