Oil Prices Surge as Trump Issues Fresh Warning to Iran Amid Escalating Conflict

Global oil prices climbed sharply on Monday after US President Donald Trump delivered a new warning to Iran through social media, intensifying investor concerns over the ongoing conflict in the Middle East and its potential impact on energy markets.

International benchmark Brent crude futures for July delivery rose 1.81%, reaching $111.27 per barrel in early trading. Meanwhile, US West Texas Intermediate (WTI) crude for June delivery advanced 2.15% to $107.69 per barrel as traders reacted to heightened geopolitical tensions involving Tehran.

In a message posted Sunday on his Truth Social platform, Trump issued a stark warning to the Iranian government, writing: “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!”

The latest comments came as Washington and Tehran remain locked in a deepening conflict that began after US and Israeli forces launched large-scale strikes against Iran in late February. Since the outbreak of hostilities, diplomatic efforts to end the confrontation have produced little progress, while fears over disruptions to global energy supplies have continued to push oil prices higher.

Concerns over a broader escalation intensified further over the weekend following a drone strike targeting a nuclear power plant in the United Arab Emirates, raising fresh alarm across financial and energy markets.

Asian stock markets were mixed on Monday as investors reacted to rising oil prices, higher bond yields, and growing geopolitical uncertainty.

Japan’s Nikkei 225 index fell 0.9% to 60,843.09, led lower by technology shares after the benchmark had surged to record intraday highs above 63,000 last week. At the same time, yields on Japan’s 10-year government bonds climbed to 2.8%, marking their highest level since the late 1990s. The rise reflected expectations of stronger inflation driven by increasing energy costs, alongside the Bank of Japan’s gradual move toward higher interest rates. Just a week earlier, the yield had stood near 2.55%.

In South Korea, the Kospi index reversed earlier losses and gained 0.9% to close at 7,558.50.

The benchmark had crossed the 8,000-point threshold on Friday amid strong demand for artificial intelligence-related technology stocks before retreating later on investor profit-taking.

Elsewhere in the region, Hong Kong’s Hang Seng index dropped 1.6% to 25,543.32, while China’s Shanghai Composite slipped 0.1% to 4,132.24 after economic data showed weaker-than-expected retail sales growth in April.

Australia’s S&P/ASX 200 declined 1.4% to 8,508.40, Taiwan’s Taiex fell 1.1%, and India’s Sensex shed 0.6%.

Currency markets also reflected growing caution among investors. The US dollar strengthened to 159.02 Japanese yen from 158.62 yen, while the euro edged slightly higher to $1.1626 from $1.1622.

European stock markets were also expected to open lower at the start of the week.

On Wall Street, US stock futures traded little changed after American markets retreated from record highs on Friday. Rising oil prices triggered renewed concerns in bond markets and prompted a broad sell-off in equities, particularly among high-flying technology stocks linked to the artificial intelligence boom.

The S&P 500 fell 1.2% from the record level it reached the previous day. The Dow Jones Industrial Average dropped 537 points, or 1.1%, while the Nasdaq Composite declined 1.5% from its own historic peak.

Technology companies, which had powered global markets higher throughout much of the year, led the downturn as investors reassessed valuations following months of rapid gains.

Chipmaker NVIDIA, widely viewed as the symbol of the AI-driven market rally, slid 4.4% and became the biggest drag on the S&P 500. Despite the decline, Nvidia shares remain up more than 26% since the start of the year.

Micron Technology also suffered heavy losses, falling 6.6%, though the company’s stock is still up nearly 154% year-to-date.

Brian Jacobsen, chief economic strategist at Annex Wealth Management, said investors may be confronting overheated market conditions after months of strong gains.

“To us, it looks like markets have pushed into overbought territory,” Jacobsen said. He added that while solid corporate earnings and the resilience of the US economy continue to support equities, “the path is unlikely to be smooth. Periods like this call for discipline more than hope.”

By fLEXI tEAM