(RTTNews) – After moving sharply higher over the two previous sessions, crude oil showed another substantial move to the upside on Thursday as U.S. President Donald Trump issued an ultimatum to Iran to come to negotiating table or face attacks worse than in June 2025.
As Iran shrugs off the U.S. threats, traders are nervous of a possible long-term supply disruption.
WTI Crude Oil for March delivery was last seen trading up by $2.23 (or 3.53%) at $65.44 per barrel.
Warning Iran is running out of time to make a deal with the U.S. on its nuclear policies, Trump added that any attack by U.S. forces this time will be far worse than the strikes it conducted for 12 days in June 2025.
Reports of Iran resuming its nuclear program and the recent ruthless suppression of anti-government protests of civilians by the ruling regime has spurred Trump to take Iran head on.
However, Iran’s Foreign Minister Abbas Araghchi responded by saying that their forces are prepared with their “finger on the trigger” to strike back against the U.S. and added that Iran was ready for a “fair and equitable” deal but not for coercion.
Reportedly, Iran has messaged commercial vessels transiting the Strait of Hormuz that it will carry out a “live fire” naval exercise in the coming days.
Earlier this month, U.S. forces stormed Venezuela and took full control of Venezuela’s oil reserves as well as production and supply. Experts are concerned of a similar mission in Iran.
Ahead of a January 30 deadline, Republican and Democratic party leaders are seeking to resolve contentious issues and strike a deal to prevent a partial government shutdown.
Earlier, a few Democrats resolved not to support any funding bill that includes financing for the Department of Homeland Services. Their stance reflects the public anger after the recent shootings of two U.S. citizens in Minneapolis by immigration authorities.
The last shutdown went on for 43 days, resulting in severe financial losses and several federal employees being put out of jobs.
In the Russia-Ukraine war, Ukraine’s President Volodymyr Zelenskyy stated that France is offering its aircraft, missiles for air defense, and aerial bombs to aid Ukraine in its fight against Russia.
Speaking of the U.S.-brokered peace proposal to end the four-year-long war, U.S. Secretary of State Marco Rubio stated that ownership of Ukraine’s Donetsk region’s is a sticking point in the talks.
Analysts view that an agreement could take longer than expected as both sides are unrelenting on territorial concessions.
Yesterday, the U.S. Federal Reserve kept interest rates at the current level, in line with market expectations.
Yesterday’s data from the American Petroleum Institute showed that U.S. crude oil inventories fell by 0.25 million barrels for the week ending January 23.
For the same period, data from the U.S. Energy Information Administration showed that crude oil inventories fell by 2.296 million barrels. Meanwhile, gasoline and distillate fuel inventories edged slightly higher.
The OPEC alliance that is meeting on February 1 is expected to stick with its earlier decision to “pause” any productivity hike for the first-quarter 2026.
In its World Oil Outlook report of OPEC, the Head of the Energy Studies, Abderrezak Benyoucef speculates that the global oil industry will require $18.2 trillion in cumulative investments to meet the anticipated rise in demand.
The U.S. Dollar Index was last seen trading at 96.26, down by 0.18 points (or 0.19%).
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