Oil holds above $100 as Trump says America ‘has ammunition and plenty of time' to fight Iran war

Oil Market Overview - Brent crude oil prices have remained above $100, with a significant increase of over 9% this week, following a 27.9% rise last week, marking the largest weekly gain since the Covid-19 pandemic in 2020 [2] - U.S. West Texas Intermediate (WTI) crude futures are projected to end the week 5.8% higher, reflecting strong market performance [2] Geopolitical Context - The ongoing U.S.-Iran conflict is entering its third week, with President Trump indicating that a resolution is not imminent, emphasizing the U.S.'s military capabilities [3] - Reports suggest that Iran's leadership remains defiant, with Supreme Leader Mojtaba Khamenei vowing to continue fighting despite claims of potential surrender [4] Supply Chain Concerns - The Strait of Hormuz, a vital oil shipping route, has experienced blockades and attacks on foreign vessels, raising fears of a prolonged conflict leading to a global economic shock [5] - Ebrahim Zolfaqari, an Iranian military spokesperson, warned that oil prices could reach $200 per barrel due to regional instability [5] Market Reactions - Oil prices have remained high despite the International Energy Agency's decision to release a record 400 million barrels from emergency reserves and the U.S. waiving certain sanctions on Russian exports [6] - Investor sentiment is becoming increasingly cautious, with concerns that the conflict may last longer than initially anticipated, impacting global oil supply [7] Historical Comparisons - Industry experts draw parallels between the current situation and the Arab oil embargo of the 1970s, which led to a quadrupling of oil prices, suggesting that the current crisis may also result in significant price increases [8]