Oil started the week strongly after Saudi Arabia and other OPEC+ members signaled intentions to keep supplies constrained for the rest of the year, while US tensions with Iran ratcheted up as President Donald Trump threatened the country in a tweet.
Futures in New York rose as much as 1.7%, following a 1.8% gain last week. Saudi energy minister Khalid Al-Falih urged members of the alliance meeting in Jeddah to “stay the course” on output cuts. Meanwhile, just weeks after the US increased sanctions pressure on Iranian crude exports, Trump tweeted “If Iran wants to fight, that will be the official end of Iran.”
Oil has rallied about 40% this year as supply cuts have outweighed concerns about slowing demand growth caused by trade tensions between the U.S. and China.
