Shares of energy companies rose alongside oil futures as President Trump threatened to escalate attacks on Iran unless Tehran reopens the Strait of Hormuz by 8 pm Eastern time Tuesday.
Iran's Islamic Revolutionary Guard Corps responded by issuing its own threats against Middle East oil-and-gas infrastructure. "We will do something to deprive America and its allies of oil and gas in the region for years," the IRGC said in a text message sent to Iranian mobile subscribers.
Kuwait's interior ministry urged citizens and residents to remain at home and avoid going out unless absolutely necessary, precautionary measures intended to safeguard public safety and strengthen emergency response efforts as President Trump's Iran deadline looms.
In its latest outlook, the Energy Information Administration raised its 2026 forecast for globally traded Brent crude to $96 a barrel from $79 a barrel previously and on West Texas Intermediate crude to $87 a barrel from $74 a barrel.
"Strikes on Iranian energy, power, or desalination infrastructure remain possible but risky, as Iran could retaliate against [Gulf nations'] production facilities," said strategists at brokerage Jefferies, in a note to clients. "Oil prices could spike toward $200 per barrel and remain elevated due to lasting production damage."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-07-26 1733ET
