Oil Settles at One-Month High After Trump Warns Iran's Backers

Oil prices climbed more than 2% on Thursday, settling at their highest level in nearly a month. The rally followed U.S. President Donald Trump's warning of economic consequences for any country providing support to Iran, as the conflict in the Middle East continues to disrupt global energy supplies.

Brent crude futures settled up $2.16, or 2.4%, at $93.78 a barrel, the highest since July 24. U.S. West Texas Intermediate crude futures for September gained $2, or 2.3%, to $87.83 a barrel, also the strongest close since late July. Both benchmarks have now risen for five consecutive sessions.

On Wednesday evening, Trump threatened "economic warfare and isolation on an unprecedented scale" against Tehran, cautioning that any nation offering "any type of lifeline to Iran" would face consequences. U.S. Treasury Secretary Scott Bessent said he would hold a press conference on Monday to outline the specific actions planned.

The war, which began on February 28 with U.S. and Israeli strikes on Iran, has severely curtailed oil flows. Tehran's blockade of the Strait of Hormuz and attacks on energy infrastructure across the region have stranded millions of barrels of Middle Eastern oil. Shipping data from Wednesday showed traffic through the strait remained far below pre-war levels; before the conflict, the waterway carried roughly one-fifth of global consumption.

Analysts at Ritterbusch and Associates said the new threats are unlikely to push Iran to give up its control of the strait without major concessions from Washington. "So, the beat goes on with no resolution in sight that would spur a major decline in oil prices back to levels anywhere close to those prior to the war," the firm noted.

This week, the United Arab Emirates suspended all financial and economic transactions with Iran until further notice, underscoring the strained relations between the Gulf producer and Tehran. The conflict has also tightened refined fuel supplies, with U.S. distillate stockpiles falling for a third straight week, according to the Energy Information Administration. Crude inventories, however, unexpectedly rose by 4.4 million barrels.

Trump's threats could complicate U.S.-China relations, said Alex Hodes, an energy analyst at StoneX, noting that China is the largest importer of Iranian crude.