Oil Prices Climb as Trump Issues Fresh Threats to Iran: How High Can They Go?

TLDR

• Brent crude surpassed $111 per barrel, with West Texas Intermediate nearing $108, marking three consecutive days of gains
• Trump issued a warning on Truth Social stating that Iran must act “FAST” or face destruction
• The US and Israel are reportedly preparing to potentially resume military strikes as early as next week
• Iraqi oil exports via the Strait of Hormuz declined to 10 million barrels in April, down from a monthly average of 93 million barrels
• A drone targeted a UAE nuclear facility over the weekend, raising concerns about regional energy infrastructure security

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(SeaPRwire) –   Oil prices increased for the third day in a row on Monday as President Donald Trump renewed threats against Iran, cautioning that there was limited time left to reach an agreement reopening the Strait of Hormuz.

Brent crude exceeded $111 per barrel following an 8% rise last week, while West Texas Intermediate approached $108.

On Sunday, Trump posted on Truth Social: “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!”

US and Israel Said to Be Preparing for Possible Strikes

According to a report from The Times of Israel, the US and Israel are actively developing military strategies to possibly resume coordinated attacks on Iran as early as next week.

“For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!” – President Donald J. Trump pic.twitter.com/33gyF0c0O5

— The White House (@WhiteHouse) May 17, 2026

Trump convened with his national security team at his Virginia golf club on Saturday. He is scheduled to meet again with Vice President JD Vance, White House envoy Steve Witkoff, Secretary of State Marco Rubio, and CIA Director John Ratcliffe in the Situation Room on Tuesday.

An anonymous senior Israeli official indicated forces are mobilizing for anticipated hostilities. “The Americans understand that negotiations with Iran are not progressing,” the official remarked. “We’re gearing up for days to weeks of combat and awaiting Trump’s final decision.”

A member of Netanyahu’s security cabinet, Zev Elkin, confirmed Israel has designated targets ready. “We have targets we intend to strike,” he told Kan radio.

Hormuz Closure Continues to Squeeze Oil Supply

Since the US and Israel launched their initial attacks on Iran at the end of February, oil prices have surged by over 50%. The closure of the Strait of Hormuz has disrupted shipments from Persian Gulf producers.

Iraqi oil shipments through the strait dropped to only 10 million barrels in April, compared to a baseline of 93 million barrels per month.

Morgan Stanley stated last week that the market is “running out of time,” warning that supportive factors for prices could collapse if the waterway remains closed into June.

“The risk premium appears likely to persist,” noted Charu Chanana, chief investment strategist at Saxo Markets. “Markets have seen numerous updates regarding potential solutions, but no credible framework yet fully eliminates the Hormuz supply threat.”

Negotiations facilitated by Pakistan and backed by China have reached an impasse. Iran’s Mehr news agency claimed Washington offered “no meaningful concessions” while demanding terms it failed to secure during the conflict.

Iran’s Fars News reported that the US presented Tehran with five conditions, including transferring 400kg of highly enriched uranium to the US, restricting activity at one Iranian nuclear site, and halting the release of frozen Iranian assets.

Weekend Drone Attack Raises Alarm

A drone struck an electrical generator located outside the Barakah nuclear power plant in the UAE on Sunday, igniting a fire. The UAE asserted no injuries occurred and that radiation safety standards remained unaffected.

The Trump administration also allowed a waiver permitting Russian crude sales to expire, further tightening global supply despite India’s appeal for an extension.

US intelligence agencies are also probing a suspected Iranian cyber attack that manipulated fuel gauge displays at gas stations across multiple US states, although no official attribution has been made.