Market News

(Bloomberg) -- Oil hit a fresh four-month high after President Trump threatened another attack on Iran, urging Tehran to negotiate a deal.

“Hopefully Iran will quickly ‘Come to the Table’ and negotiate a fair and equitable deal,” Trump said in a post on his Truth Social network, adding that “the next attack will be far worse!” than the one that took place last year.

The potential risk to Iranian supplies has injected a premium into oil prices and led futures to start the year on a strong footing, up more than 10% this month, despite forecasts for a glut. That has also kept the cost of bullish options high relative to bearish ones.

Brent futures reached $68.19 a barrel after Trump’s post, the highest level since the end of September, extending a 3% jump in the previous session.

Trump had already reiterated on Tuesday that a “big armada” was headed to the Middle East, adding that hopefully the US wouldn’t have to use it. On Wednesday, he said the fleet is larger than the one sent to Venezuela, where Nicolas Maduro was deposed earlier this year.

Trump’s focus on Iran followed the Islamic regime’s deadly crackdown on protests against the government of Ayatollah Ali Khamenei.

There’s already been regional reaction to Trump’s signals over recent days. The Iranian and Qatari foreign ministers stressed the need to continue diplomatic efforts to reduce tensions, while Saudi Arabia’s Crown Prince said the Kingdom’s land won’t be used to carry out operations against Tehran.

“Market sentiment appears to be gradually turning more positive, as the bearish oversupply narrative so prevalent in the second half of 2025 weakens,” Standard Chartered analysts including Emily Ashford wrote in a note. “We envisage an uptick in volatility and increasing focus on both supply and demand risks..”