Global oil prices have jumped sharply above $110 (£83.38) a barrel, and major stocks were mixed Monday in Asia following Donald Trump’s expletive-laden social media post that threatened to bomb civilian infrastructure in Iran.
Brent crude rose by 0.7 percent to $109.80 while US-traded oil jumped by 0.8 percent at $112.40 as the markets opened Monday in Asia.
Japan’s Nikkei climbed 1.65 percent, South Korea’s Kospi advanced 2 per cent and India’s BSE Sensex Index was also up by 0.25 percent
Most Asian markets were closed for holidays as Australia, New Zealand, and Hong Kong celebrated Easter, while mainland China and Taiwan marked Qingming Festival, the tomb-sweeping holiday.
Gold declined by 1 percent to about $4,630 an ounce and silver tanked 1.5 percent to around $72 an ounce.
Trump Sunday escalated his threats to bomb Iran’s power plants in the next two days as he taunted the country’s leaders in an expletive-laden outburst for keeping the Strait of Hormuz closed.
The President issued a new ultimatum to Tehran to end its chokehold over the major Persian Gulf waterway for the transport of oil and gas by Monday.
“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran,” the President wrote on Easter. “There will be nothing like it!!! Open the F***in’ Strait, you crazy b*******, or you’ll be living in Hell – JUST WATCH! Praise be to Allah,” he wrote on Truth Social.
Trump later said in an interview to Fox News that there was a “good chance” an agreement with Iran would be reached Monday, but said he was still considering “blowing everything up and taking over the oil” if a deal was not reached soon.
Traders have now set their sight on Trump’s press conference “with the military” at the Oval Office at 1 p.m. Monday.
Iran has largely responded by posting taunting memes in English on X in an attempt to counter Trump’s frequent Truth Social posts on the war.
Senior Iranian military officer Ali Abdollahi Aliabadi dismissed an earlier deadline set by Trump as “helpless, nervous, unbalanced and stupid”, warning that “the gates of hell will open” for the U.S. leader.
The chokehold of the narrow waterway, through which one-fifth of the world’s energy shipments usually passes, has been severely disrupted as Tehran has warned countries against using the strait in retaliation for the U.S. and Israel’s attacks since February 28.
Iran has said the waterway would only reopen fully after Tehran’s demands, including compensation for the war, were met and warned of continued strikes on economic and infrastructure targets in the neighbouring Gulf region.
On Sunday, the eight members of the Organization of the Petroleum Exporting Countries and allies agreed to increase their production quotas by 206,000 barrels per day for May. The move appears largely symbolic for several major producing countries behind the Strait of Hormuz that have sustained damage to oil production facilities and transport infrastructure since the war started.
Yardeni Research President and Chief Investment Strategist, Ed Yardeni, said this will market will be continue to be dominated by developments in the Middle East but outcomes of the meeting of Federal Open Market Committee, which sets U.S. monetary policy, will compete for attention.
“Trump warned Iran that unless the Strait is opened immediately, Monday will be Obliteration Day, when the U.S. will bomb Iran’s electric power plants,” he wrote in a research report.
On Monday, the slight uptick in shares was likely aided by suggestions of a potential mediation for a 45-day ceasefire. According to the Axios report on Sunday, the U.S., Iran and a group of regional mediators were discussing the terms for a potential 45-day ceasefire that could lead to a permanent end to the war.
The mediators were discussing the terms of a two-phased deal, it said, citing four U.S., Israeli and regional sources with knowledge of the talks. The negotiators were pressing for the first phase of the deal, which would be a potential 45-day ceasefire during which a permanent end to the war would be negotiated.
The second phase would be an agreement on ending the war, the report said.
