Oil prices climbed sharply Thursday after President Donald Trump vowed to unleash “economic warfare” on Iran and the United Arab Emirates said it was suspending trade with Tehran, a move that deepens the Islamic Republic’s isolation and pushes any prospect of a renewed nuclear deal further off the table.
Brent crude futures, the international benchmark, rose 2.9% to $94.31 per barrel as of 7:55 a.m. ET, according to CNBC. U.S. West Texas Intermediate futures for September delivery were 3.3% higher at $88.67 in morning trade.
Trump threatens ‘most crushing’ economic operation
In a post on Truth Social, Trump said he had given Iran an opportunity to strike a deal — and that Tehran had failed to take it.
“TRAGICALLY, for them, they have failed to take it,” he wrote, before announcing what he called “the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY.”
The president described the effort as “Economic Warfare and Isolation on an unprecedented scale.” He also warned of “TREMENDOUS Economic Consequences” for any country providing support to Iran, including cash transfers, currency swaps and shipping registries, CNBC reported.
UAE halts trade with Iran
The price move came after the UAE said Wednesday it was suspending all trade and financial transactions with Iran. The Gulf state, one of Iran’s key commercial partners, said two ballistic missiles had been launched toward its territory from Iran on Tuesday. Iran’s foreign ministry spokesperson Esmail Baghaei denied the strikes, according to CNBC.
The UAE’s decision heaps additional pressure on Iran, which already faces U.S. sanctions, and signals that Gulf states are willing to sever economic ties with Tehran amid rising regional tensions.
The combination of renewed U.S. threats and the UAE’s trade suspension has rattled crude markets, with traders pricing in a higher risk premium on supply disruptions from the Strait of Hormuz, a vital chokepoint through which a significant share of global oil flows.
The development also complicates the already stalled diplomatic track. With the UAE now cutting commercial ties and Washington vowing unprecedented economic pressure, the path back to any renewed ceasefire or nuclear agreement appears increasingly narrow, according to analysts cited by CNBC.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/20/oil-prices-brent-wti-hormuz-trump.html
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