Oil Surges as U.S. Strikes on Iranian Forces Escalate Middle East Tensions

Oil prices rose after U.S. strikes on Iranian forces, while stocks trimmed earlier gains as crude oil climbed and optimism over a potential deal with Tehran faded.

Crude oil prices rise as geopolitical tensions escalate following reported U.S. strikes on Iranian forces. (Photo: bp Facebook)

Brent crude rose about 2% to near $98 a barrel after slumping more than 7% on Monday, according to Bloomberg News and The Associated Press (AP), reported.

In a Truth Social post on Monday, Trump urged Saudi Arabia, Qatar, and other countries to join the Abraham Accords and recognize Israel. He said Iran’s enriched uranium would either be handed over to the U.S. or, preferably, destroyed in Iran. Tehran rejected the claim, saying Trump was lying.

Trump faces pressure from Iran hawks, including GOP Senator Lindsey Graham, who argue the emerging deal concedes too much to Tehran.

His push to expand the Abraham Accords — under which the United Arab Emirates and other Arab states recognized Israel in 2020 — is seen as an effort to ease concerns.

Saudi Arabia and Qatar have said they will not normalize ties with Israel without progress toward Palestinian statehood.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu said Israel would intensify strikes against Iran-backed Hezbollah after hitting sites in southern Lebanon.

The escalation followed Hezbollah drone attacks and a rocket intercepted by the Israeli air force.

Iran has demanded an end to hostilities against Hezbollah in Lebanon as part of any agreement with the U.S. Axios reported that a draft deal between Washington and Tehran includes language addressing the conflict involving Israel and Hezbollah.