Oil Prices Surge As Trump Urges Tehran Evacuation Amid Escalating Conflict

The post, which came as tensions in the region remained volatile, sent oil prices jumping nearly two per cent before trimming some of the gains

Traders had assumed the conflict would remain localized. However, Trump’s latest remarks have reignited concerns that the situation could spiral further

Source : Freepik

Oil prices climbed sharply on Tuesday, as escalating rhetoric between the United States and Iran reignited fears of a broader conflict in the Middle East. The gains followed a stark message from former President Donald Trump, who called for residents of Tehran to evacuate, citing the Iranian regime’s nuclear ambitions and ongoing missile exchanges between Iran and Israel.

Taking to social media, Trump issued a blunt message to the Iranian public, “Iran should have signed the 'deal' I told them to sign. What a shame, and waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!”

The post, which came as tensions in the region remained volatile, sent oil prices jumping nearly two per cent before trimming some of the gains later in the day. Analysts noted that while physical supply lines and oil infrastructure have largely been spared so far, markets are reacting to the rising potential for disruption.

Military Posturing Raises Stakes

On the military front, the Pentagon confirmed the USS Nimitz had exited Southeast Asia after canceling a planned stop in Vietnam, redirecting toward the Middle East with “additional capabilities.” Israeli Prime Minister Benjamin Netanyahu declared that his country’s military actions were “changing the face of the Middle East.”

While Trump claimed the United States was not involved in Israel’s campaign, Iran’s foreign minister said Monday that “one phone call” from the American leader could bring the conflict to a halt.

Oil Volatility Persists As Talks Hang In Balance

Oil markets had pulled back slightly on Monday, June 16, following a rally on Friday after Israel’s strikes on Iranian positions. Traders had assumed the conflict would remain localized. However, Trump’s latest remarks have reignited concerns that the situation could spiral further.

Adding a layer of complexity, reports surfaced that Tehran was open to restarting nuclear negotiations, provided the US stays out of the conflict. During his trip to the G7 summit in Canada, Trump hinted that discussions might soon resume, “As soon as I leave here, we're going to be doing something. I have to be back as soon as I can. I wish I could stay for tomorrow, but they understand, this is big stuff."