WTI Oil Rises as Trump Vows 'Greatest Economic Isolation' on Iran

WTI oil climbed to a new high on Monday after President Donald Trump threatened any country that provides a lifeline to Iran would face "tremendous economic consequences." Treasury Secretary Scott Bessent said the administration would unveil the plan next Monday, calling it "the greatest coordinated economic isolation in the history of the world."

China, the largest buyer of Iranian oil, pushed back, saying sanctions would not work and called for diplomacy. Iran said the U.S. threatened the global economy. Tehran appears to be betting that oil prices will rise to unsustainable levels faster than its economy collapses, while Washington bets the opposite, the report said.

The standoff pushed WTI oil above the $86.00 resistance level, with the next target in the $91.00–$91.50 range, traders said. Brent oil rallied past $94.00, heading toward the $100.00 mark. Global oil reserves are falling at a steady pace, according to the report, adding to the bullish case.

Natural gas, by contrast, pulled back after the EIA reported a storage build of 16 Bcf, below the 19 Bcf forecast. Stocks are 28 Bcf below last year, 185 Bcf above the five-year average. The technical picture is unchanged, with gas stuck near the $2.75–$2.80 resistance. A break above $2.80 would target the 50-day moving average at $2.97, while a drop below $2.70 would open a path toward August lows near $2.62.

The oil rally has implications beyond energy markets. Higher crude prices feed into inflation, complicating the Federal Reserve's path on interest rates. Traders said the standoff could keep oil elevated through the summer, adding pressure on central banks to hold rates higher for longer.

Bessent said the plan would be unveiled Monday. No further details have been released.