US oil futures spike as Trump ramps up Iran threats and the global supply scramble intensifies
US oil futures spike as Trump ramps up Iran threats and the global supply scramble intensifies
Huileng Tan Tue, April 7, 2026 at 5:15 AM UTC
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US President Donald Trump.Brendan Smialowski/AFP/Getty Images -
Oil futures are rising as Trump escalates Iran threats, stoking fears of a deeper global supply shock.
Trump warned the US military could destroy Iranian infrastructure.
US gas has surpassed $4 a gallon, showing how fast global oil shocks are hitting American drivers.
Oil prices jumped on Tuesday after President Donald Trump ramped up threats against Iran.
"We have to have a deal that's acceptable to me, and part of that deal is going to be we want free traffic of oil and everything," he said at a White House press conference.
He also warned the US military could destroy Iran's infrastructure within hours if no agreement is reached by 8 p.m. ET on Tuesday.
Trump said "every bridge" in the country could be "decimated" and that "every power plant in Iran will be out of business, burning, exploding, and never to be used again."
US West Texas Intermediate crude oil futures climbed 2.9% to $115.67 per barrel as of 12:04 a.m. ET, while international benchmark Brent futures rose 1.6% to $111.48 a barrel.
Front-month US oil futures are now trading at a premium to Brent — a rare reversal — reflecting the immediate scramble for supply. The WTI contract is for May delivery, while Brent's equivalent is for June, highlighting tighter near-term demand for US-linked barrels.
That shift underscores how quickly global trade flows are being redrawn.
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Following sweeping sanctions on Russia, Europe has become the largest buyer of US crude in recent years, but it is now facing stiffer competition amid the war in Iran.
Asian economies, heavily reliant on Middle Eastern oil, are scrambling to replace disrupted supply, driving a global hunt for cargoes from the Americas to Africa.
"Asian refiners, shut out of Middle Eastern supply, are bidding aggressively for every available Atlantic Basin barrel," Paola Rodriguez-Masiu, the chief oil analyst at Rystad Energy, wrote in a note last week, adding that buyers are "desperate for additional barrels."
The global scramble is hitting US consumers, as the country remains exposed to global price swings despite being a net energy exporter.
Many US refineries are configured to process heavier imported crude, limiting how quickly they can switch to domestic supply.
The pain is most visible at the pump, where prices have soared past $4 a gallon.
on Business Insider
Source: “AOL Money”
