Brent Tops $110 as Trump Threatens Iran, Morgan Stanley Warns on Supply
Brent crude topped $110/bbl and WTI neared $107/bbl as oil climbed a third day following Trump’s warnings to Iran and disrupted flows through the Strait of Hormuz. Morgan Stanley warned the market faces a “race against time” if the waterway remains closed into June.
1. Oil Price Rally
Oil prices have surged for a third day, with Brent crude rising above $110 per barrel and West Texas Intermediate approaching $107. The benchmarks are up over 50% since late February after US and Israeli strikes on Iran, as supply concerns drive a sharp rally.
2. Trump’s Threats and Disruption
President Trump renewed threats against Iran to negotiate an end to weeks of conflict and reopen the Strait of Hormuz, while allowing a US waiver for Russian crude exports to lapse. Additional pressure came from a weekend drone attack on a UAE energy facility, underscoring regional volatility and constrained Persian Gulf flows.
3. Morgan Stanley Analysis
Morgan Stanley cautioned that the market is in a “race against time” if the vital waterway remains closed into June, warning that factors which have restrained price gains could unwind. The firm highlighted heightened volatility risks as supply tightness persists.