Brent crude climbed over $109 as a Saudi pipeline shutdown tightened supply, even as Trump said the oil rally would reverse once the conflict ends.
- Trump said the Iran conflict “will not be long” and linked its end to a sharp decline in oil prices.
- Saudi Arabia shut its East-West pipeline after drones launched from Iraq damaged the key crude artery.
- USO gained 0.76%, and UCO rose 0.19%, with retail sentiment for both ETFs rated “extremely bullish.”
President Donald Trump said oil prices will “drop like a rock” once the military conflict with Iran ends, adding that he does not expect it to last long.
Trump also blamed the Biden administration for price increases across America and said oil is currently a temporary exception to broader price declines.
Meanwhile, crude oil prices rose early on Monday after Saudi Arabia closed a critical pipeline that bypasses the Strait of Hormuz.
Trump Also Blames Biden Administration
Trump said in a post on Truth Social that oil prices will “drop like a rock” as soon as the military conflict with Iran ends, adding that “that will not be long.”
He described oil as a “temporary exception” to what he said were broader declines in prices across the U.S., adding that “prices are coming down sharply.”
Trump also sought to contrast current oil prices with those under former President Joe Biden. “Even Oil was higher under Biden than it is right now,” Trump said.
He blamed Biden and his administration for price increases across America, stating that “price increases throughout America were caused by Sleepy Joe Biden and the Biden Administration, not by ‘TRUMP.’”
Trump also said his administration had prevented Iran from having “a Nuclear Weapon.”
Crude Prices Jump As Saudi Pipeline Shuts
Crude oil prices jumped on Monday after Saudi Arabia closed its critical pipeline that bypasses the Strait of Hormuz, a disruption that will constrain global supplies at a time when the market is already tight, reported CNBC.
Brent futures, the international benchmark, climbed above $106 a barrel, while U.S. West Texas Intermediate futures crossed $102.
Drones launched from Iraq damaged the East-West pipeline on Thursday, forcing the Saudi government to close the key crude oil artery. Riyadh has not disclosed how badly the pipeline is damaged or how long it will remain shut, stated CNBC.
Trump Defends Iran War Decisions
Last week, Trump said he is standing by his decisions on the Iran war even as the conflict becomes a growing political challenge for him and Republicans heading into the midterms.
“I don’t believe in the word regret,” Trump said in an interview with Fox News when asked about concerns over the war heading into the midterms. “You can always question yourself a little bit. And a few people have asked me that. If I had it to do again, I’d do exactly as I did.”
USO, UCO Gain As Retail Sentiment Turns Bullish
The United States Oil Fund (USO), which tracks the price of West Texas Intermediate, was up 0.76% at the time of writing on Monday. ProShares Ultra Bloomberg Crude Oil (UCO) was up 0.19%. Retail sentiment for both USO and UCO was “extremely bullish.”
ProShares Ultra Bloomberg Natural Gas (BOIL) was up nearly 5%, while sentiment was “bearish.”
Crude Oil Brent futures (QA_F) were higher by 1.23%, while WTI Crude Oil futures (WS_F) were down 2.37% at the time of writing.
SPY, DIA, QQQ: Stocktwits Retail Sentiment
At the time of writing on Monday, U.S. equities were trading lower. The SPDR S&P 500 ETF (SPY) was trading 0.2% lower at the time of writing, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) had declined 0.9%. The Invesco QQQ Trust ETF (QQQ), which tracks the Nasdaq-100, was also lower, down 0.35%.
Stocktwits retail sentiment for SPY and DIA was ‘bearish,’ while it was ‘extremely bearish’ for QQQ.
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