Trump’s warning to Iran rattles markets, Brent crude rises above $91

Global financial markets fell in response to escalating tensions between the United States and Iran, while oil prices posted significant gains.

Brent crude rose to $91.74 per barrel, while U.S. crude gained 1.5%, reaching $87. These developments followed a weekend exchange of attacks and President Donald Trump’s statement that Iran would face a response.

Oil prices rose by more than 1% as investors grappled with concerns about an expansion of the conflict and its potential impact on inflation. These fears put pressure on major stock markets around the world.

Following Trump’s warning that Washington would strike Tehran “hard,” concerns about further escalation deepened. Renewed tensions between the two countries continued to affect international markets on Tuesday as well.

The United States attacked Iran’s Larak Island with missile launchers. In response, Tehran struck U.S. military targets in Jordan and the United Arab Emirates.

After six months, the conflict remains unresolved. Iran continues to keep the Strait of Hormuz closed, while the United States maintains its blockade of Iranian ports.

Uncertainty over a new wave of clashes, along with the risk of higher inflation and the possibility of tighter monetary policy, weighed negatively on stock markets.

Declines were recorded on the stock exchanges of Tokyo, Hong Kong, Shanghai, London and Frankfurt. Meanwhile, President Donald Trump is expected to meet with executives of oil-processing companies in an effort to curb rising fuel prices in the United States.