HOUSTON: Oil prices rose by more than $2 on Monday on global supply worries stoked by investor pessimism about diplomatic efforts to resolve the Iran war, with US President Donald Trump demanding Iran’s surrender and threatening to bomb Oman.

Brent crude futures were up $2.50, or 2.82 per cent, at $91.02 a barrel by 1:57pm EDT. US West Texas Intermediate crude futures rose $2.27, or 2.75pc, to $84.67 a barrel.

Iran “should put up the white flag of surrender,” Trump told a Fox News reporter during a phone interview. “If Oman gets in the way, we’ll bomb the s*** out of them,” Trump added.

A senior Iranian official told Reuters Tehran would escalate tensions in the Strait of Hormuz and beyond, and launch an attack if the US fails to implement an interim peace deal fully in a matter of weeks. Monday was the day by which Iran and the US were expected to reach a final deal under a memorandum of understanding agreed in June.

Still, oil prices are unlikely to move substantially higher unless there is a halt in the current flow of crude out of the Strait of Hormuz at night and/or a closure of the Bab el-Mandeb Strait, Bjarne Schieldrop at SEB Research said.

Published in Dawn, August 18th, 2026