Oil prices remained elevated despite a slight pullback, as markets reacted to renewed threats by US President Donald Trump to resume military strikes on Iran should Tehran reject Washington’s peace terms.
Brent crude hovered above $110 a barrel on Wednesday as escalating tensions between the United States and Iran continued to fuel fears of prolonged supply disruptions in the Middle East, while the rand weakened against a resurgent dollar and gold prices retreated amid rising interest rate concerns.
Oil prices remained elevated despite a slight pullback, as markets reacted to renewed threats by US President Donald Trump to resume military strikes on Iran should Tehran reject Washington’s peace terms.
The conflict, now in its 12th week, has effectively shut down the strategic Strait of Hormuz, a key shipping route for global oil supplies.
The closure of the waterway has intensified inflation fears globally, with investors increasingly concerned that sustained high energy prices could force central banks to maintain higher interest rates for longer.
