Oil prices rise after Trump vows 'economic war' on Iran

Oil prices climbed Thursday amid heightened U.S. pressure on Iran, casting a shadow over hopes for a swift resolution to the nearly six-month conflict in the Gulf. Brent crude for October delivery rose 2.36% to $93.78 a barrel, while West Texas Intermediate for September delivery gained 2.33% to $87.83.

The United States called on allies and China to support President Donald Trump's new strategy to isolate Iran's economy, aiming to trigger the collapse of the Tehran government. Iran has faced international sanctions since the 1979 revolution.

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The sanctions, the blockade of Iranian ships (by Washington) and the recent rupture of relations by the United Arab Emirates exert enormous economic pressure on Tehran, but that does not necessarily mean that Iran will return to the negotiating table.

Arne Lohmann Rasmussen of Global Risk Management noted Iran's long-standing "extreme skill" in circumventing sanctions. He stated that sanctions, coupled with Washington's blockade of Iranian ships and the recent severing of ties by the UAE, exert "enormous economic pressure" on Tehran. However, he cautioned that this pressure "does not necessarily mean that Iran will return to the negotiating table."

Analysts believe the Strait of Hormuz could remain closed for an extended period. David Morrison, an analyst at Trade Nation, observed that commercial traffic through the strait remains a fraction of pre-war levels, indicating Iran's continued blockade of the vital waterway.

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A review of maritime data continues to show that commercial traffic transiting the strait represents only a fraction of pre-war levels.