Oil prices surge past $91 as Trump questions Iran deal viability

Oil prices surged on Monday, with Brent crude surpassing $91 per barrel, following remarks from President Donald Trump that cast doubt on a potential new deal with Iran to extend an expiring ceasefire. In a statement made during an event in the Oval Office, Trump expressed skepticism about the negotiations, saying, “They want to make a deal, but they’re not going to make the kind of a deal that I feel is necessary.” His comments triggered a sharp rise in oil prices, which closed the day up 2.65% at $90.87.

This increase in oil prices is tied to ongoing tensions surrounding Iran and its influence on global oil supply. The remarks come amid a backdrop of volatile trading in oil markets, with prices fluctuating significantly since a 60-day memorandum of understanding was signed with Iran in June. While there was hope that prices might stabilize after the fighting began, the situation has changed as violence continues with no clear resolution in sight.

In addition to rising oil prices, Treasury yields also increased, reflecting market responses to Trump’s comments. The 10-year U.S. Treasury yield climbed to 4.72%, while the 30-year yield rose above 5.3%, the highest since June 2007. Meanwhile, stock indexes reacted to the news with declines; the S&P 500 dropped 0.5%, and the Nasdaq fell by 0.3%.

The national average price for gasoline has also seen a significant increase, now at $4.06 per gallon, marking a 36% rise since the onset of the war. As tensions escalate and shipping traffic through the crucial Strait of Hormuz remains low — with only three vessels reported crossing on Sunday — the potential for further disruptions in oil supply looms large. The uncertainty surrounding Iran's negotiations and the broader geopolitical landscape will likely continue to impact oil prices and consumer costs in the coming weeks.