Key insights
- Oil prices surged due to escalating US-Israeli tensions with Iran, threatening supply disruptions. Trump's warning about targeting Iranian infrastructure adds to geopolitical risk. Higher oil prices could pressure consumer spending and corporate margins, posing a bearish risk to US equities, particularly consumer discretionary and transportation sectors. However, energy stocks may benefit.
TOKYO, April 6 (Reuters) - Oil prices opened higher on Monday after the Easter holiday weekend as the U.S.-Israeli war with Iran continues to disrupt global oil supply.
Brent crude futures rose $2.4, or 2.2%, to $111.43 a barrel by 2215 GMT. U.S. West Texas Intermediate crude futures gained $3, or 2.7%, to trade at $114.57 per barrel.
U.S. President Donald Trump on Sunday ratcheted up pressure on Iran, threatening in an expletive-laden Easter Sunday social media post to target Iran’s power plants and bridges on Tuesday if the strategic Strait of Hormuz is not reopened.