Crude Spikes 3% as Trump Vows to Bomb Iran's Bridges

The threat escalates a confrontation that has simmered for months. Iran has repeatedly said it controls the Strait of Hormuz, through which roughly a fifth of the world's oil passes, and has stated its missile production has never stopped.

On the chart, the 100-day moving average at $89.48 caps the rally. Crude has traded below that line since June 12. The move pushed above the 50% retracement of the May 18 to June low, a level at $86.13 that now serves as near-term support. A break below that opens a run at last Friday's swing high at $84.55, a zone where price oscillated earlier this week before finding a bid.

Traders said the headline-driven spike was orderly, with volumes concentrated in the first hour after the statement. No further official communications from Iran have been released as of Tuesday evening.