Crude oil futures traded higher on Monday morning after the US and Iran warned each other of attacks on energy infrastructure.
At 10 am on Monday, June Brent oil futures were at $108.09, up by 1.58 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $99.15, up by 0.94 per cent. April crude oil futures were trading at ₹9,385 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹9,258, up by 1.37 per cent, and May futures were trading at ₹9,083 against the previous close of ₹8,971, up by 1.25 per cent.
Trump issues ultimatum over Strait of Hormuz
In a post on the social media platform Truth Social over the weekend, US President Donald Trump said: “If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!”
Iran warns of retaliation targeting regional infrastructure
Replying to this through a post on the social media platform X, Mohammad Bagher Ghalibaf, Speaker of the Parliament of Iran, said: “Immediately after our country’s power plants and infrastructure are targeted, critical infrastructure, energy, and oil infrastructure across the region will be considered legitimate targets and will be irreversibly destroyed, and oil prices will remain higher for a long time.”
He also said: “Alongside military bases, those financial entities that finance the US military budget are legitimate targets. US treasury bonds are soaked in Iranians’ blood. Purchase them, and you purchase a strike on your HQ and assets. We monitor your portfolios. This is your final notice.”
Natural gas futures also edge higher
April natural gas futures were trading at ₹290.70 on MCX during the initial hour of trading on Monday against the previous close of ₹287.80, up by 1.01 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April jeera contracts were trading at ₹21,775 in the initial hour of trading on Monday against the previous close of ₹22,145, down by 1.67 per cent.
April turmeric (farmer polished) futures were trading at ₹14,120 on NCDEX in the initial hour of trading on Monday against the previous close of ₹14,532, down by 2.84 per cent.