Oil Climbs as US and Iran Trade Warnings

Markets were shaken this week after a tense weekend between the United States and Iran. Oil prices pushed higher right away, while gold lost all its recent gains.

It started with sharp words flying back and forth on Saturday and Sunday, and by Monday morning traders were scrambling. President Donald Trump gave Iran a short deadline to reopen the Strait of Hormuz, a narrow waterway in the Middle East that carries about one-fifth of the world’s oil supply. He warned of serious damage to Iran’s power plants if the route stayed blocked.

Iran hit back fast, saying any strike would force them to shut the strait down permanently. That kind of talk scared everyone watching energy supplies. Oil reacted almost instantly. The main global benchmark, Brent crude, climbed nearly two percent and topped $114 a barrel early in the day.

In the US, West Texas crude followed the trend and jumped over $100. Drivers and businesses everywhere could soon see higher costs at the pump and for heating. Gold, on the other hand, slipped more than two percent.

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