Oil prices on course for record monthly rise amid risk of further escalation and mixed messaging from US
Donald Trump has threatened to “obliterate” Iran’s power stations and fresh water plants if Tehran does not agree to peace terms “shortly”, even as he claimed diplomatic progress in ending the war that was instigated by the US and Israel.
Tehran has remained defiant during the month-long conflict, describing US peace proposals as “excessive, unrealistic and irrational” and firing waves of missiles at Israel.
The risk of further escalation, including a US ground operation to seize Kharg Island, continued to send tremors through financial markets. Oil prices are on course for a record monthly rise.
In a post on his Truth Social network, Trump expressed confidence that a negotiated settlement would soon be reached, adding that the US was in “serious discussions” with what he characterised quixotically as “a more reasonable regime” in Tehran.
