US stocks dipped and oil prices surged Monday after President Donald Trump escalated his threats against Tehran.
Even as Trump hailed “great progress” in talks, he warned that the US would “obliterate” Iran’s oil wells, power plants, and offshore terminal at Kharg Island if Tehran did not reopen the Strait of Hormuz.
The US crude benchmark closed above $100 for the first time since July 2022, as investors grow skeptical of Trump’s diplomatic optimism, and instead price in a more aggressive US campaign, including a possible ground invasion.
A longer conflict will trigger a chip and food crisis alongside an energy one, Foreign Policy’s editor-in-chief wrote, as Iran reminds the world “it won’t go quietly into the night.”
