Oil Rises, Markets Fall After Trump Threatens Iran and Hormuz Takeover

Global oil prices rose and stock markets fell on Monday after US President Donald Trump warned that America could resume bombing Iran and take control of the Strait of Hormuz, a key waterway for world oil shipments, if a nuclear deal is not reached.

Brent crude rose 1.35 percent to $81.66 per barrel, while US crude jumped 2.4 percent to $77.66 per barrel following the remarks. Trump made the comments on Fox News on Sunday, shortly after Iran threatened to close the Strait of Hormuz, accusing Washington of violating earlier commitments. Talks between the two sides held in Switzerland stalled on Sunday, though a US official said negotiations were still ongoing.

On Wall Street, Dow Jones and S&P 500 futures each fell 0.4 percent, while Nasdaq futures dropped 0.6 percent. In the US, the average petrol price stood at around $3.94 per gallon, down 14 percent from a month ago but still roughly one dollar above pre-conflict levels.