Oil prices jump as Trump threatens escalation in Iran

Oil prices have jumped up again as the war in Iran rages on and President Trump threatens escalations.

On Monday morning, international benchmark Brent crude was trading at about $114 per barrel, up significantly from last week, when prices were floating closer to $100 or $105 per barrel.

Prices have been elevated since the war began because of the effective closure of the Strait of Hormuz, a key oil shipping lane. About a fifth of the world’s oil was previously moving through this strait on a given day.

Prices have fluctuated amid changing expectations about the duration of the conflict. 

President Trump, in an interview published Sunday, suggested the U.S. could “take the oil” in Iran.

“Maybe we take Kharg Island, maybe we don’t. We have a lot of options,” he told the Financial Times. The administration has also been increasing its troop presence in the region while refusing to rule out a ground invasion.

Meanwhile, on Monday, the president threatened to target Iranian power plants, oil wells, and drinking water desalination plants.

The conflict crossed the one-month mark over the weekend.

Gasoline prices have risen along with the oil and were averaging about $3.99 per gallon in the U.S. on Monday.