Brent crude (BZ), the international benchmark for oil, briefly fell below $100 per barrel on Wednesday morning after Axios reported that the White House believed it had made progress toward a deal with Iran following the submission of a new proposal. The terms of the plan include a gradual reopening of the Strait of Hormuz from both sides.
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Forget margin or options. Here's how the pros trade QQQHowever, oil prices climbed back above $100 after President Trump warned Iran of severe consequences if it didn’t accept the plan.
Trump Warns Of Escalation If Iran Rejects Deal
Trump said the U.S. would resume military operations “at a much higher level and intensity than it was before” if Iran rejects the plan.
Oil has climbed 45% since the onset of the war on February 28, with the closure of Hormuz creating a global supply shock. That’s also increased the risk of inflation. In March, the Core Personal Consumption Expenditures Index notched an annual increase of 3.2%, the highest rate since November 2023. The index is the Fed’s preferred gauge of inflation.