The recent remarks made by U.S. President Donald Trump at the 'Peace Council' regarding Gaza have heightened worries about a possible American military action against Iran. This growing tension has translated into escalating oil prices, which have climbed to their highest point in six months. Investors are alarmed as Trump granted Iran a 10-15 day ultimatum to reach an agreement, warning that failure to do so could lead to dire consequences, thereby intensifying fears of a military conflict and resulting interruptions in global oil supply.

Simultaneously, Iran is conducting joint naval exercises with Russia, shortly after temporarily closing the Strait of Hormuz for military drills. While Iran has stated that it does not seek war, it has firmly warned that it will respond decisively to any attacks. This complex interplay of military maneuvers and diplomatic warnings has led to heightened anxiety in energy markets, further affecting oil prices.

Amidst these tensions, reports indicate that Trump is still weighing his options, contemplating a limited initial strike to exert pressure. Analysts suggest that such decisions will significantly impact not only regional stability but also the dynamics of global oil prices, with various forecasts pointing towards an 11% price increase as markets react to the unfolding scenario.