Oil prices spike as US-Iran tensions heat up
Oil prices just hit their highest point since September 2025, all because things are getting tense between the US and Iran.
After President Trump warned of possible military action if a nuclear deal isn't reached, West Texas Intermediate crude advanced 1.3% in earlier sessions, moving toward $64 a barrel—even though there's plenty of oil in the market.
Trump's threats fuel market jitters
Trump's social media post about US ships being ready to act "with speed and violence, if necessary" has traders on edge.
Many are now buying bullish call options (basically betting prices will go up) at rates not seen in over a year, hoping to protect themselves if things escalate.
Oil markets betting on more volatility
Options markets—where people bet on price swings—are seeing renewed action as traders brace against the risk of a new confrontation between the US and Iran.
Last year, premiums spiked after a US strike on Iran but dropped when oil facilities stayed safe.
Right now, prices reflect political risks more than actual supply issues, with many buying options as a quick hedge against further conflict.