Oil Prices Surge to One-Month High Amid U.S. Threat to Tariff Iran Buyers

Global crude oil prices climbed to their highest level in over a month, with Brent crude reaching $87.60 per barrel on Monday, a 3.2% increase from Friday's close. U.S. West Texas Intermediate (WTI) crude also advanced, trading at $84.35 per barrel, marking a 2.9% gain. The surge followed a public statement by the U.S. President affirming intentions to impose tariffs on countries that import oil from Iran, a move aimed at curbing Tehran’s energy revenue amid ongoing regional instability. The announcement intensified market speculation about potential disruptions to global oil flows, particularly as Iran’s exports have been expanding in recent months through alternative trade routes, including partnerships with India and China. Analysts note that such tariffs could force buyers to reroute shipments or reduce volumes, tightening supply in key markets. The International Energy Agency recently adjusted its 2026 global demand forecast upward by 180,000 barrels per day, citing resilient economic growth in Asia and increased industrial activity. Energy stocks responded positively, with ExxonMobil (XOM) and Chevron (CVX) both rising more than 2.5% in early trading. Meanwhile, oil service firms such as Halliburton (HAL) and Schlumberger (SLB) saw moderate gains, reflecting improved sentiment toward future investment in upstream operations. The U.S. Energy Information Administration reported that domestic crude inventories declined by 2.1 million barrels last week, below the expected decline of 1.7 million barrels, reinforcing supply tightness. The policy shift has prompted concern among oil-importing nations, particularly in Southeast Asia and Europe, where governments are now assessing potential impacts on energy costs and inflation. The European Commission has signaled it may initiate consultations with the U.S. to evaluate legal and economic implications of the proposed tariffs.